What is one of the major differences between liability coverage provided by a BOP and the Insurance Services Office (ISO) Commercial General Liability (CGL) Coverage Form?

Liability coverage provided by a Business Owners Policy (BOP) typically includes hired and nonowned auto liability coverage as part of its standard offering. This is a significant distinction because many businesses do not own vehicles but still require coverage for vehicles that are rented or borrowed for business purposes. The inclusion of hired and nonowned auto liability within the BOP makes it a more comprehensive and appealing option for small to medium-sized businesses, which may engage in activities involving vehicles without maintaining a fleet of their own.

In contrast, the ISO Commercial General Liability (CGL) Coverage Form does not automatically include hired and nonowned auto liability. Businesses that need this type of coverage must often purchase additional endorsements to their CGL policy, potentially leading to higher costs and more complexity in their insurance program. This difference in coverage scope highlights the practicality of a BOP for certain business needs, especially for those that may not have the risk profile addressed by a traditional CGL policy without modifications.