“I just need general liability” is one of the most common things small business owners say when they call us. About 80% of the time, general liability alone isn’t enough — they actually need a Business Owners Policy (BOP). Here’s the difference and how to know which one fits your Michigan business.
What general liability actually covers
General liability (often just “GL”) covers:
- Bodily injury — someone slips on your wet floor and breaks a wrist.
- Property damage — you spill coffee on a client’s laptop at a meeting.
- Personal and advertising injury — libel, slander, copyright infringement in your ads.
- Products and completed operations — a product you sold injured someone, or work you completed caused damage.
- Legal defense costs — even if a claim is frivolous, the insurer pays your attorney.
That’s it. GL doesn’t cover your building, your equipment, your inventory, or lost income if you can’t operate. It’s a liability-only policy.
What a BOP adds
A Business Owners Policy is GL plus two other big things:
- Commercial property — your building (if you own it), business contents, inventory, equipment, and often some “off-premises” coverage if you take equipment to job sites.
- Business income / business interruption — if a covered loss shuts you down, this pays lost net income and ongoing expenses (rent, payroll) while you recover.
BOPs can also include:
- Electronic data / cyber add-ons
- Hired and non-owned auto liability
- Equipment breakdown
- Employee dishonesty
- Outdoor signs
The nice thing: a BOP is usually cheaper than buying GL and commercial property separately because carriers bundle them at a discount and apply shared deductibles/limits more efficiently.
When general liability alone is enough
There’s a narrow set of situations where standalone GL is the right call:
- Pure service businesses with no physical location and no equipment — a consultant who works from a laptop anywhere. If you have nothing to insure as property, a BOP’s property side is wasted.
- Contractors whose equipment is covered by a separate inland marine policy — GL + inland marine + commercial auto can make sense instead of a BOP for some trades.
- Very small side businesses where a BOP’s minimum premium exceeds what you need — some carriers have $600–$1,000 minimum premiums on BOPs. If you’re running a $5K/year side hustle, that might not pencil.
When a BOP is the right call (most small businesses)
If any of these apply:
- You own or rent a commercial space, even a small one
- You have equipment, tools, or inventory worth more than about $10,000
- Your business would lose revenue if you couldn’t operate for 2+ weeks
- You serve customers in your location
- You take laptops or other equipment off-site
→ You probably want a BOP.
What a BOP won’t cover
Common gaps BOPs don’t include, and what you need instead:
- Workers’ compensation — separate policy, required in Michigan in most cases once you have employees (more on thresholds below).
- Commercial auto — if you have vehicles owned or leased in the business name, you need commercial auto. A BOP’s “hired and non-owned auto” endorsement isn’t the same thing.
- Professional liability / errors & omissions — if you give professional advice (consulting, design, accounting), a BOP doesn’t cover claims arising from that advice.
- Cyber liability — BOP cyber add-ons are usually thin. If you handle customer data, get standalone cyber.
- Commercial umbrella — extra liability on top of GL and commercial auto. Cheap, highly recommended once you have a few employees or significant revenue.
Typical Lapeer-area examples
Just so this is concrete, here’s what we typically recommend for common local businesses:
- Small retail shop (under 2,000 sqft): BOP + workers’ comp if you have employees. Maybe cyber if you store customer info.
- Restaurant: BOP + liquor liability (if applicable) + workers’ comp + commercial auto if you deliver.
- Contractor (drywall, flooring, concrete, etc.): GL + tools/equipment inland marine + commercial auto + workers’ comp. Often a BOP works too depending on the operation.
- Accountant or solo consultant: BOP (light property) + professional liability.
- Auto repair shop: Garage policy (specialized), not a standard BOP — your exposure is too specific.
What to ask yourself before you buy
- What physical assets does the business own? (If any, you need property coverage.)
- Would I survive 30 days without revenue? (If no, you need business interruption.)
- Do customers come to my location? (If yes, your liability exposure is higher than if not.)
- Do I have employees? (If yes, workers’ comp is coming whether you want it or not.)
Most small businesses end up with a BOP plus one or two other policies. The sweet spot in pricing for most is the $600–$1,500/year range for a BOP covering a typical small operation.
If you’re starting a business in Lapeer County — or just realized you’ve been under-insured for years — give us a call or text. We’ll walk through what you actually do, not just what’s on your website, and make sure the coverage matches reality.