A specific bundled policy known as Business Owners insurance, or BOP, is an excellent way for small and medium-sized businesses to protect themselves from any unforeseen incidents.
A BOP is one policy that can cover a vast array of coverages, including General Liability, Property Damage, and Business Interruption which are some of the most critical coverages that any business, regardless of industry, should have.
The Business Owners policy was developed with small businesses in mind, who don't necessarily need to have the number of coverages as a larger business, due to less risk.
Usually, there will be limitations on the size of business that can purchase a BOP, so be sure to discuss with your insurance agent all of the aspects of your business.
Some familiar businesses that can benefit from a BOP include office buildings, small contractors, barber shops, and retail stores.
As a business owner, maybe you need the ability to opt into some extra coverages, or don't need some of the bells and whistles that come with a traditional BOP.
A Commercial Package policy, or CPP, could be a better option for you. While it works similarly, by bundling together some coverages like General Liability, Property, Equipment Floater, and Data Breach, there are many more options.
A CPP is made for businesses who need more flexibility, and are more extensive than a small business. Often, you get more for your money this way, even if you end up spending a little more for the customization features.
Bear in mind that neither the BOP nor the CPP has the option to add some other vital coverages you might need, like Commercial Flood insurance, Workers Compensation, and Directors & Officers liability. Covering Professional Liability insurance is also important, but not available on a CPP.
A BOP is already put together and has standard coverages that cannot be removed, and there are limits as to what can be added. A BOP is designed for more smaller businesses with less risk.
A CPP can be built from the ground up. The coverage options with a CPP are almost unlimited. A Commercial Package Policy is meant for a more risky business.
Regardless of industry, you need to have one of these types of policies. If you are a small business looking to save money and do not care about picking and choosing extra coverages, go with the BOP. If you need a more customizable option and want more bang for your buck, the CPP might be right for you. As always, discuss your options with an independent agent, because they are the best to tell you which policy is most beneficial for your business.