What is true regarding liability coverage limits in a BOP?

In a Business Owner’s Policy (BOP), liability coverage limits are indeed more restricted compared to what is typically offered in a Commercial General Liability (CGL) policy. A BOP is designed specifically for small to medium-sized businesses and combines various types of coverage, including property and liability, under a single policy.

The liability coverage within a BOP generally has set limits that are lower than those available in a CGL policy, which is more comprehensive and tailored for larger businesses or operations with higher risk exposure. These restrictions are in place because the BOP is intended to provide a more affordable option for small businesses while offering essential coverage without the extensive limits found in other commercial policies.

Understanding the limitations of a BOP is critical for business owners as they assess their coverage needs, especially if they operate in high-risk industries or have significant liabilities. Recognizing these differences aids in making informed decisions about risk management and the type of insurance coverage to choose for their specific circumstances.