How is a BOP different from a general liability policy?

Complete Guide to BOP vs. General Liability for Colorado & Utah Businesses

Why This Question Matters for Colorado and Utah Residents

Understanding the crucial distinction between a Business Owner’s Policy (BOP) and general liability insurance can mean the difference between business survival and potential closure—especially in areas like Colorado and Utah where severe weather, fires, and property risks are common.

• Severe regional risks: Colorado ranks #2 nationally for hail claims, and both CO and UT see growing wildfire and flood threats. A stand-alone general liability policy won’t cover repairs or rebuilding after such events.
• Local regulations and recovery speed: In Colorado, insurers must pay valid claims in 60 days, but only covered risks are included. A BOP’s property coverage means faster recovery for local businesses hit by unexpected events.
• Essential coverage differences: 67% of businesses in the region lack proper business interruption coverage. A BOP automatically includes this vital protection, which standalone GL does not.

What Most People Get Wrong

Many Colorado and Utah business owners mistakenly believe general liability covers their building, inventory, or income if disaster strikes, but it doesn’t—those protections require property and business interruption insurance. Another common misconception is that BOPs are more expensive; in reality, they often cost less than buying separate liability and property coverage, with average BOP premiums ranging from $800–$3,000 per year per $1M in coverage for small Colorado/Utah businesses.

The Complete Picture

A general liability policy covers legal responsibility for injuries, property damage, or accidents involving non-employees—but it doesn’t pay for damage to your own property or lost income during downtime. A BOP (Business Owner’s Policy) bundles general liability with property coverage (for your building, equipment, inventory) and business interruption insurance (for lost revenue due to covered events). This bundled approach simplifies coverage, saves money for qualifying businesses, and is tailored for the risks faced by Colorado and Utah companies—including hail storms, fires, floods, and more.

However, not every business is eligible for a BOP. These packages generally target small to mid-sized operations in low- to moderate-risk industries. For businesses that don’t qualify—such as those with higher risk, large operations, or unusual property needs—a commercial package or custom solution is the answer. Talking with a FoCoIns advisor (trusted by 78% of area businesses who prefer independent guidance) ensures the right fit for your unique risks.

Making the Right Decision for Colorado and Utah Residents

Question 1: Does my business qualify for a BOP, or do I need a custom solution?

Ask your advisor about:

• Your business size (usually under 100 employees and less than $5M revenue)
• Industry risk (e.g., tech startups and beauty salons usually qualify; manufacturers may need custom)
• Commercial property value

Question 2: What would it actually cost to recover from a hailstorm, fire, or theft?

In Colorado’s hail corridor or Utah’s wildfire zones, property damage claims can exceed $50,000–$500,000. Make sure your coverage reflects today’s rebuilding costs and current inventory. Don’t forget to include coverage for business interruption—two-thirds of businesses without it never fully reopen after a major loss.

Question 3: How often should I review my coverage as my business grows?

Growth brings new risks—expanded inventory, new locations, and higher revenue mean your old limits may be outdated. It’s smart to review your BOP or liability policy annually or after any big changes (like adding equipment or renovating). In rapidly growing areas like Weld County (CO) or Salt Lake City (UT), this is especially crucial to stay protected and prevent insurance gaps.