If you are a startup or a growing business, you may have purchased only the minimum insurance to keep cash flow manageable. After an initial purchase online or a brief meeting with an agent, many owners never have an insurance expert review their portfolio.
General liability for businesses
Many businesses carry Commercial General Liability (CGL). This coverage protects your business, employees, and customers from third-party claims for property damage or bodily injury up to the policy limits.
CGL policies can be extended with endorsements to cover additional exposures such as employee theft or business auto liability, but endorsements can also create overlap or add cost.
When you add endorsements
- Each endorsement typically increases your premium.
- Some endorsements duplicate coverage you already have, which can lead to unnecessary cost.
Small-business packaged policies
An alternative many owners consider is a Business Owner's Policy (BOP). A BOP bundles liability with property coverage and often includes other standard protections useful for small and medium-sized companies.
Beyond liability and property, standard BOP coverage commonly includes personal injury liability related to advertising and similar claims.
Advertising and personal injury examples
- Libel
- Slander
- Theft of intellectual property
- Infringement of a company name or trademark
Buildings coverage and business personal property
BOPs and similar policies can protect company-owned property used in the business if it is damaged or destroyed.
They often cover interior property such as furniture, fixtures, and equipment that are permanently placed at your business site.
Coverage may extend to building additions completed for business expansion and to customers' property while it is in your care.
If you have not had an annual insurance review, schedule one now and talk to an agent to confirm you have the appropriate limits and avoid overlapping endorsements.
Frequently Asked Questions
What is the main difference between general liability and a packaged policy?
General liability focuses on third-party claims for injury or property damage, while a packaged policy bundles liability with property and other standard coverages for small businesses.
Can endorsements duplicate coverage I already have?
Yes. Endorsements can overlap existing protections, which is why a portfolio review helps identify and remove unnecessary or redundant coverage.
Does a packaged policy cover customer property left on-site?
Many packaged policies include care, custody, and control coverage for customer property, but limits and exclusions vary by policy.
How often should I review my business insurance?
At least annually, and any time you add employees, expand locations, or change operations that affect risk exposure.