Whether you’re interested in a business owners policy (BOP) or a Commercial Package Policy (CPP), it is important to learn about the differences between the two so you know you’re getting the right one to meet your needs. The better you understand the two policies, the wiser choices you can make about which one serves your business best.
What Does a Business Owners Policy Offer Businesses?
Business owner’s insurance, sometimes called BOP insurance, offers a small amount of essential, albeit basic, insurance coverages that small businesses need in a bundled product. The benefit to businesses is that this presents a wide range of options to small business owners at affordable prices. It is not, however, what anyone would consider a full-service insurance plan for businesses of any size.
What’s included in a BOP?
The one thing that sets BOP apart from the CPP is what is covered. The business owner’s insurance policy offers minimal basic protection for the following:
- Commercial property
- General liability
- Business income
There are some plans that may provide additional protection for businesses, though most are designed to address little more than the most basic insurance protection needs. They are great starts for insurance, but you’ll need additional protection to create a well-rounded and robust protection package.
Specific types of coverage you may wish to purchase in addition to a BOP include:
- Commercial auto insurance
- Cyber liability insurance
- Inland marine insurance
- Professional liability insurance
- Umbrella liability insurance
- Workers compensation insurance (WCI)
These types of coverage provide better-rounded protection for businesses and may be required by law. Work with an independent insurance agency to discuss the nuts and bolts of an effective insurance policy for your business needs.
What Does a Commercial Package Policy Offer Businesses?
CPPs are designed with medium to large businesses in mind and offer far greater flexibility than the BOP, along with more robust insurance protection. The average CPP offers the same fundamental commercial property and general liability protection a BOP offers. From there, though, the customization possibilities are nearly limitless and include many of the options for coverage listed below:
- Business crime insurance
- Business income coverage
- Commercial auto insurance
- Commercial umbrella liability protection
- Electronic data processing protection
- Employment practices liability insurance
- Equipment breakdown insurance
- Inland marine protection
- Pollution liability
With all that in mind, there are still things the average CPP doesn’t cover. You’ll need to fill in the coverage gaps through individual policies.
Working with an independent insurance agency can help you find the right bundled and individual policies to ensure all your insurance protection needs are in place.
Begin with the basics your business requires and seek to expand your coverage from there.