Commercial insurance is complex – plain and simple. It can feel as though there’s an endless amount of risk that needs to be addressed and countless policy options to choose from. To help business owners and operators navigate the confusion, the insurance industry has created policy “bundles,” including the Business Owners Policy (BOP) and Commercial Package Policy (CPP). While the names may sound similar, a BOP and CPP are not one and the same. Here’s why.
Business Owners Policy – Essential Core Coverage
In one streamlined package, a Business Owners Policy combines three core types of coverage needed by small and medium-sized companies:
BOPs were designed to simplify coverage for owners and are intended for businesses that have a similar level of risk exposures. While incredibly valuable for many businesses, BOPs are often seen as out-of-the-box solutions – with each package offering limited opportunities for customization.
Typically, BOPs do not include coverage for Workers’ Compensation, Professional Liability, Commercial Auto, or Cyber Liability – which often need to be purchased as separate policies.
Commercial Package Policy – Customized Coverage in One Policy
While a Commercial Package Policy also bundles different types of coverages, it’s designed to provide better flexibility for medium and large-sized businesses that need to address unique risk exposures.
Packages generally start with the core coverages:
- Commercial Property Insurance
- General Liability insurance
From there, additional coverages are added based on the company’s needs, such as:
- Business Income
- Commercial Auto
- Commercial Umbrella Liability
- Cyber Liability
- Equipment Breakdown
- Employment Practices Liability
- Inland Marine
- Professional Liability
CPPs empower businesses to build the package of insurance coverages they need without being forced into coverages they don’t.
How to Choose the Option that’s Best-Suited for You
Choosing between a BOP and CPP depends on the specific details of your business, industry, and risk exposures and tolerance. At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
