When deciding upon the right Business Insurance coverage for your medical practice you may be given options may include a combination of the following: Medical Professional Liability, General Liability or a Businessowner’s Policy. We’ve noticed that there may be some confusion between GL and BOPs so if you’re wondering what these coverages mean, what they cover, and how exactly are they different, we’re here to help!
General Liability (GL)
In considering business insurance, commercial general liability (GL) usually comes to mind. GL insurance provides protection and legal defenses against slips, trips & falls as well as 3rd party property damage.
We can’t stress how important this coverage is to your business; although it’s only one piece of the puzzle, when properly protect your business.
What’s Covered?
- Bodily Injuries suffered on premises.
- Property Damage caused while executing your work.
- Personal Injuries i.e. slander, libel, copyright infringement.
Depending upon the policy limits, GL may also compensate for defense (attorneys’ fees, court costs, and settlements). Keep in mind that even the most careful business owners could face these claims, which is why the coverage is considered the cornerstone of any business protection plan.
Businessowner’s Policy (BOP)
The best way to describe a businessowner’s policy (BOP) is essentially taking GL to another level. Bundling a couple insurance products into one package at a potentially better rate.
What’s Covered?
- General Liability
- Property Insurance compensates for insured business assets lost or damaged by fire, theft, or windstorms.
- Business Interruptions Insurance reimbursement for lost income when you’re forced to temporarily halt business operations due to covered property issues.
NOTE: If your practice uses cars and/or trucks, you should also consider Commercial Auto Insurance (Must be hired and non-owned; added to your BOP).
Though a comprehensive and affordable option, a BOP may not be available to all business owners. This package of coverages, including GL, provides at minimum, coverage for the basic common losses faced by a practice.
Not every practice has access to a BOP because of the unique exposures that these businesses might have.
Does Your Practice Qualify for a BOP?
Provided that your practice is a small business, without a lot of employees (roughly fewer than 50), the premises are small, and you won’t need more than 12 month of Business Interruption coverage, there are coverage options.
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