Question 1

Is a BOP better than general liability insurance?

Accepted Answer

A BOP is almost always better value for businesses with physical assets to protect. A BOP bundles General Liability + Commercial Property at a 10-20% discount compared to buying each separately. If your business has equipment, inventory, furniture, or a dedicated location worth protecting, a BOP delivers more coverage for roughly the same cost. However, if you have no business property (a pure service business working from home with no dedicated equipment), standalone GL may be sufficient and slightly cheaper.

Question 2

What does GL cover that a BOP does not?

Accepted Answer

There is no coverage that standalone GL provides that a BOP does not — a BOP includes all the same GL coverage plus commercial property and usually business income/interruption. A BOP is an additive product. The only reason to choose standalone GL over a BOP is cost (if you have no property to protect, the property portion of a BOP has no practical value) or carrier availability (some insurers offer GL but not BOPs for your industry).

Question 3

Does a BOP include professional liability?

Accepted Answer

No. A BOP does not include professional liability (Errors & Omissions). A BOP covers GL + property. If your business provides professional advice, consulting, design, technology, or other services where a client could claim your work caused financial harm, you need a separate professional liability / E&O policy in addition to your BOP or GL policy.

Question 4

Can contractors get a BOP?

Accepted Answer

Many contractors can get a BOP, but eligibility varies by trade and revenue. General contractors, painters, landscapers, and low-to-medium-risk trades can often qualify for a BOP. Higher-risk trades (roofing, demolition, structural work) may find BOP options limited and need standalone GL + inland marine + workers comp instead. ERGO NEXT can quote both options instantly so you can compare.

Question 5

How much cheaper is a BOP vs. separate policies?

Accepted Answer

A BOP is typically 10-20% cheaper than buying GL and commercial property separately, because the carrier saves administrative overhead managing one policy. On a $1,500/year combined exposure, you might pay $1,200-$1,350/year through a BOP vs. $1,500 for two separate policies. The bundled discount is one of the clearest cost wins available to small business owners.

Feature	General Liability Only	Business Owners Policy (BOP)
Third-party bodily injury	✅ Covered	✅ Covered
Third-party property damage	✅ Covered	✅ Covered
Advertising injury	✅ Covered	✅ Covered
Your business equipment & property	❌ Not covered	✅ Covered
Business income interruption	❌ Not covered	✅ Often included
Professional liability (E&O)	❌ Not included	❌ Not included
Workers compensation	❌ Not included	❌ Not included
Typical cost (low-risk small biz)	$400–$900/yr	$800–$1,500/yr
Best for	Service businesses with no property	Businesses with a location or equipment

Business Type	GL Only (annual)	BOP (annual)	Recommendation
Freelance consultant (home office)	$420–$700	$750–$1,100	GL only — no property to protect
Small retail store	$600–$900	$1,100–$1,800	BOP — inventory + property value
Restaurant (1,500 sq ft)	$1,200–$2,000	$2,200–$3,500	BOP — equipment + income protection
Landscaping company	$800–$1,400	$1,400–$2,200	BOP — equipment + vehicles
Home-based bakery	$500–$800	$900–$1,400	BOP — commercial kitchen + product
IT consultant (office)	$600–$1,000	$1,000–$1,600	BOP + E&O separately

General Liability vs. BOP: Which Does Your Business Need?

At a Glance: GL vs. BOP

When General Liability Only Makes Sense

When a BOP Is the Right Choice

Real Cost Examples (2026)

Bottom Line: Default to a BOP for Most Small Businesses

Compare GL vs. BOP for Your Business

Frequently Asked Questions