NJM Blog

What Happens if a Customer Gets Injured Without BOP or CPP?

What Happens if a Customer Gets Injured Without CGL?

What are BOP and CPP?

Businessowners policy (BOP) and commercial package policy (CPP) combine protection for common property and liability risks businesses face. BOP is designed to meet the needs of small businesses, while CPP is tailored for mid– to large–sized businesses.

Why should a business owner get a BOP?

A BOP provides liability coverage that protects you and your employees from lawsuits involving covered events that occur on your premises or arise from your operations or your sale of products. Covered incidents can include:

  • Bodily injury — injury to a third party on your property

  • Property damage — damage to a third party’s property

  • Product liability — a product the business provides that causes bodily injury or property damage

  • Reputational and professional liability — advertising that results in libel, slander, or copyright infringement, or an error that results in a client’s financial loss

Additionally, clients or vendors may require you to have liability coverage to do business with those companies.

BOP and CPP also provide valuable first–party coverages to businesses. They can protect buildings, business property, and small tools and equipment while in transit or at a job site.

What happens if a customer is injured and the business owner does not have liability coverage?

The owner’s company assets are at risk in the event of a lawsuit. They also bear the cost of their legal defense and any damages, including medical costs.


Craig F. Stanovich, No Harm, No Coverage — Personal and Advertising Injury Liability Coverage in the CGL (Part 1), https://www.irmi.com/articles/expert-commentary/no-harm-no-coverage-personal-and-advertising-injury-liability-coverage-in-the-cgl-part-1, (January 2007)
Business Liability: What if Someone Gets Hurt?, https://aofund.org/resource/business-liability-what-if-someone-gets-hurt
Commercial general liability insurance, https://www.iii.org/article/commercial-general-liability-insurance
Andrew Ancheta, Commercial General Liability (CGL), https://www.investopedia.com/terms/c/commercial-general-liability-cgl.asp, (Updated October 24, 2020)
Erik J. Martin, Commercial General Liability Insurance Guide: Everything You Need to Know, https://www.uschamber.com/co/start/strategy/guide-to-commercial-general-liability-insurance

The information contained in this article is for informational purposes only, should not be construed as professional advice and is not intended to replace official sources. Other resources linked from these pages are maintained by independent providers; therefore, NJM cannot guarantee their accuracy. Furthermore, this article is not an insurance policy, and does not, in any way, replace or modify the definitions and information contained in individual insurance policies. Terms and coverage availability may vary by state, and exclusions and deductibles may apply. Discounts also vary by state and may not be applied to all policy coverages. Coverage for an accident or loss is subject to the terms and conditions of the insurance policy applicable to a particular claim.