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General Liability Insurance vs. Business Owner's Policy: What's the Difference?

General Liability Insurance vs. Business Owner's Policy: What's the Difference?

Insurance is important in every aspect of life, especially if you own a business. Having business insurance can protect you and your livelihood from lawsuits, disasters, and more.

When researching business insurance, you’ve likely come across the terms “general liability insurance” and “business owner’s policy.” Here are the differences between the two.

General Liability Insurance

General liability insurance is insurance coverage that helps protect your business from the following:

  • Claims of bodily injury
  • Property damage to others
  • Advertising injury

These are not the only claims that general liability insurance can cover, however. Insurance agents can customize your coverage according to your industry to help ensure you have the most protection possible.

Business Owner’s Policy

A business owner’s policy adds business income and commercial property to your general liability coverage.

Commercial Property Insurance

Commercial property insurance covers the physical location of your business and your equipment. It applies to your business property, whether you own it or simply lease it.

Business Income Insurance

Business income insurance can help replace any lost income due to a temporary shutdown. For example, this policy will protect you if a fire breaks out in your business and you have to shut down during an investigation or cleanup.

That’s not all business income insurance is able to do; it can also help cover extra expenses you may accrue from employee absences.

Other Insurance Coverages

When purchasing a business owner’s policy, you can also add other types of coverage, depending on what’s right for you and your business.

Extra coverage you can add to your business owner’s policy include the following:

  • Professional liability
  • Commercial auto coverage
  • Workers’ compensation
  • Data breach coverage

Professional liability insurance covers you and your business if someone tries to sue you for an error in your professional services.

Commercial auto coverage can help protect the vehicles driven for your business, such as delivery trucks.

Workers’ compensation provides benefits to employees who suffer work-related illnesses or injuries. Depending on your business, you might be required by law to carry this type of insurance.

Data breach insurance covers you if sensitive or private information is ever stolen from your business.

Tallahassee General Liability Insurance

In Tallahassee, general liability insurance is limited and only covers certain things. In most cases, general liability only covers damages or injuries to your business from third-party causes.

What this means is that general liability doesn’t cover any damages to your business property or any injuries to your employees.

Insurance companies in Tallahassee, Florida, can take a look at your specific business and industry and help you purchase a customized business owner’s policy that will give you the best protection possible.

While general liability insurance is important, business owners need more protection than what general liability can offer on its own. No one can predict equipment malfunctions that may result in bodily injury to your employees or worldwide disasters that cause temporary shutdowns, as in the case of the COVID-19 pandemic.

Don’t go unprotected. Learn more about business coverage to identify what types of protection you need.


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The above description(s) provide(s) a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.