Commercial insurance can be overwhelming, with a seemingly endless list of risks to address and policy options to choose from. To simplify the process, the insurance industry offers policy bundles like the Business Owners Policy (BOP) and Commercial Package Policy (CPP). While they sound similar, these two options serve different needs.
Business Owners Policy – Essential Core Coverage
A Business Owners Policy (BOP) is a streamlined package that combines three core coverages essential for small and medium-sized businesses:
- Commercial Property Insurance
- General Liability Insurance
- Business Income Insurance
BOPs simplify coverage for businesses with similar risk exposures, providing a valuable “out-of-the-box” solution. However, BOPs are less flexible and typically exclude coverage for:
- Workers’ Compensation
- Professional Liability
- Commercial Auto
- Cyber Liability
These coverages usually need to be purchased as separate policies.
Commercial Package Policy – Customized Coverage in One Policy
A Commercial Package Policy (CPP) is designed for medium and large businesses with more unique risk exposures. While it also bundles core coverages like Commercial Property Insurance and General Liability Insurance, CPPs allow for customization with additional coverages, including:
- Business Income
- Commercial Auto
- Commercial Umbrella Liability
- Cyber Liability
- Equipment Breakdown
- Employment Practices Liability
- Inland Marine
- Professional Liability
CPPs provide the flexibility to include only the coverages your business needs without being tied to unnecessary options.
How to Choose the Option That’s Best for You
Deciding between a BOP and CPP depends on your business size, industry, and specific risk exposures.
At Swarts, Manning & Associates, we specialize in tailoring commercial insurance solutions to meet your needs. Contact us today for a complimentary consultation at (833) 878-2820.
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