Business Insurance Options: What’s the Difference?

We at Insurance Town and Country offer a LOT of different options when it comes to choosing business insurance for your company; between the different insurance brands, policy types, additions, exemptions, and exceptions, there are hundreds of possibilities for your company to choose and that can get confusing. We’re here to help organize a business insurance plan that makes sense for your company’s unique business needs, but we know you’d like to have an idea about what products and services you need. Below we have explained the differences between Commercial General Liability, Commercial Umbrella, and Business Owner’s Policies to help you find the plan that makes sense for your business.

Commercial General Liability (CGL):
A CGL is a necessity for any business owner. It insures the business against claims of liability for bodily injury, property damage, and any slander or false advertising. This acts as basic protection for the daily risks involved with the operation of your company. Commercial General Liability will protect you up to a certain point, then any amount over the preset insurance coverage will be left to your company to pay.
For example, you may be insured up to $1,000,000 per occurrence with an aggregate coverage amount of $2,000,000. That means that if someone gets hurt in your business and sues you for $1,500,000, the insurance company will pay $1,000,000 and you will be responsible for the other $500,000. If 10 people were injured at your business over the course of the year and each one sued you for $300,000. The insurance company would pay all of the claims in full, until it had paid a total of $2,000,000, then you would be responsible for paying the remaining $1,000,000.

Commercial Umbrella Insurance:
This kind of insurance is not a standalone policy. You must first have a Commercial General Liability policy, then you can add Commercial Umbrella Insurance to increase the amount to which the insurance company will pay.
Using the first example, if the company owner had purchased Commercial Umbrella Insurance, that policy would have begun covering the additional $500,000 after the Commercial General Liability ran out.

Business Owner’s Policy (BOP):
A BOP can include many types of insurance coverages, but not all businesses can qualify. With a Business Owner’s Policy, you bundle Commercial Property Insurance, Commercial General Liability Insurance, and Crime Insurance into a single policy. A BOP can also include additional coverage options based on your specific situation. Some additional coverages include:

  • Premises Liability
  • Premises Medical
  • Fire Legal Liability
  • Business Income Insurance
  • Building and Personal Property Protection
  • On-Site Equipment Insurance
  • Coverage for Inventory Loss

Now that you know the basics, our Insurance Specialists can answer some of your more specific questions regarding what kind of policy your company should choose, how much insurance your company needs based on its size, industry, and revenue, and if your company qualifies for a Business Owner’s Policy. Give us a call at 303–388-7216 or shoot us an email at so that we can narrow your focus, help you made a good insurance decision, and provide you with an accurate quote for your company.