BOP vs. General Liability Insurance

What is the difference, which one does your business need, and when is a BOP the better value? Updated October 2026.

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The Core Difference

General liability (GL) is a single coverage type — it protects you from third-party injury and property damage claims. A Business Owners Policy (BOP) is a bundle: it includes GL plus commercial property insurance (and often business interruption) at a discounted combined rate.

The simplest way to think about it: a BOP contains GL, but GL does not contain a BOP. If you buy a BOP, you already have GL coverage. You only need standalone GL if you do not need the property component.

General Liability Only

$40–$150/month
Includes
  • ✓Third-party bodily injury
  • ✓Third-party property damage
  • ✓Personal & advertising injury
  • ✓Legal defense costs
Does NOT include
  • ✗Commercial property
  • ✗Business interruption
  • ✗Equipment & inventory
Best for: Home-based, mobile service businesses, freelancers, contractors who work at client sites

Business Owners Policy (BOP)

$80–$300/month
Includes
  • ✓Everything in GL (above)
  • ✓Commercial property (building/contents)
  • ✓Business interruption insurance
  • ✓Some add equipment breakdown
Does NOT include
  • ✗Workers comp (separate)
  • ✗Commercial auto (separate)
  • ✗Professional liability (separate)
Best for: Retail stores, restaurants, offices, gyms, studios — any business with a physical location

Which Industries Typically Use Each?

Businesses that typically buy standalone GL

  • →General contractors & subcontractors
  • →Landscapers & lawn care
  • →Cleaning services
  • →Dog walkers & pet sitters
  • →Freelancers & consultants
  • →Handymen & mobile trades
  • →Event planners (venue insures the building)

Businesses that typically buy a BOP

  • →Retail stores & boutiques
  • →Restaurants & cafes
  • →Hair salons & barbershops
  • →Gyms & yoga studios
  • →Office-based professional firms
  • →Auto repair shops
  • →Bakeries & food businesses

See GL and BOP Prices for Your Business

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BOP vs. General Liability FAQs

Is a BOP more expensive than standalone general liability?+
A BOP typically costs more per month than standalone GL — but it is usually cheaper than buying GL and commercial property separately. A BOP bundles general liability with commercial property (and often business interruption) at a 15-30% discount versus buying each policy individually. If your business has a physical location, equipment, or inventory, a BOP almost always provides better value.
Does a BOP include general liability?+
Yes. Every BOP includes general liability coverage as a standard component. When you buy a BOP, you are getting GL plus commercial property insurance in a single bundled policy. You do not need to buy separate GL if you have a BOP — but you may need to add endorsements for professional liability, workers comp, or commercial auto, which are typically NOT included in a standard BOP.
Does a BOP cover workers comp?+
No. Workers compensation is not included in a BOP. It is a separate policy you must purchase (and are legally required to carry in most states if you have employees). A BOP typically includes: GL, commercial property, and business interruption. Workers comp, commercial auto, professional liability, and cyber liability are all separate add-ons or separate policies.
Can I get a BOP without commercial property?+
Not typically. A BOP is specifically a bundle of GL and commercial property. If you do not need property coverage (home-based business, no owned equipment), you would buy standalone GL instead of a BOP. Some carriers are flexible with micro-businesses, but a true BOP requires a property component.
What does a BOP NOT cover?+
A standard BOP does not cover: workers compensation, commercial auto, professional liability (E&O), cyber liability, flood or earthquake damage (separate policies needed), and liquor liability (needs an endorsement). For most small businesses with a physical location, the BOP is the starting point and you add other coverages on top based on your specific risk.
How do I know if I need a BOP or just GL?+
Get standalone GL if: you work from home, you rent space from clients (they insure the building), you have minimal equipment under $5,000, and you have no inventory. Get a BOP if: you rent or own a commercial space, you have significant equipment or tools ($10,000+), you carry inventory, or you want business interruption coverage (pays your bills if you cannot operate after a covered loss). When in doubt, get quotes for both and compare.