If you are a business owner or are thinking about becoming a business owner soon, navigating the insurance landscape can be confusing or difficult. Especially if you are trying to do it by yourself. Let’s start with this idea. What is the difference between a BOP (Business Owner’s Policy) and a Commercial Package Policy, and which one is right for you and your business?
A business owner policy (BOP) combines protection for all major property and liability risks in one package. This type of policy assembles the basic coverages required by a business owner in one bundle. It is usually sold at a premium that is less than the total cost of the individual coverages. BOP’s are usually targeted at small and medium-sized businesses.
A commercial package policy (CPP) is a wise investment for organizations that are growing, larger in size, or face specialized or complicated risks and combines coverages for multiple perils. A CPP allows a business to take a flexible approach by allowing a high degree of customization and may combine two or more coverages in a single policy. Business auto policies are commonly added to the bundle
The main difference between the two is customization of the policy itself. A BOP may consist of specific coverages that don’t necessarily fit for the business needs; however, they can’t be removed. A CPP, however, includes coverages that are explicitly selected by the policyholder. Most CPPs do provide some level of property and liability coverage to protect physical assets but endorsements and additional coverages would need to be added separately.
Still confused? Reach out to speak to one of our knowledgeable staff members to help you navigate your specific business needs; because every business and business owner is different.