What is the main difference between a CGL policy and a BOP?

If you have a couple of trucks, tools, and possibly an employee or two, a CGL policy might be sufficient for you. The liability policy plus a commercial auto insurance policy listing your employees as drivers will take care of most contractor classifications. If you also own or lease a business structure to house your trucks and tools and from which you manage your business, a BOP might be a better choice.

Is a BOP more expensive than a CGL?

Not necessarily. In some cases, you can add property coverage to a CGL, turning it into a package policy, which adds to the cost because of more documents and endorsements to look after. A BOP might be more convenient for both the company and the insured as it natively contains many of the coverages you’d have to add and pay extra for on a CGL contract. A BOP is often the more economical way to go with enhancements and options like equipment breakdown, cyber-related risks, and employment practices. Up to four locations can be included on a BOP policy without having to attach separate forms.

Please complete and submit this short questionnaire, and we will guide you in determining which option is best suited for your contracting business.