Many businesses across America use Business Owners Insurance (BOP) to cover liabilities and protection against property damage. There are other options to consider, but BOP is usually the most cost-effective plan for a small to medium-sized company. Here’s a look at the differences between BOP and Commercial Package Insurance.
The Basics of Business Owners Insurance
BOP is a preferred insurance plan among small and medium-sized businesses because it bundles two types of insurance into one package. If you were to buy general liability and commercial property insurance separately, it would likely cost more. Moreover, BOP covers the costs of various types of lawsuits, along with property damage and lost revenue and wages due to business interruption.
The types of businesses that use BOP include small contractors, restaurants, hair salons, and tax consultants. Not all businesses qualify for BOP, so you’ll need to share information with an insurance expert to determine if your firm qualifies.
How BOP Differs from Commercial Package Insurance
Another option exists, known as a Commercial Package Policy (CPP), for businesses that need customization and more flexibility. CPP works for companies that don’t need BOP features but require various types of riders. It’s a business insurance plan comprised of bundled coverages for general liability, property, equipment floater, and other customized options. This type of coverage usually gives you broader protection for the amount you’re paying compared to BOP.
Neither BOP nor CPP includes workers’ compensation, which is a state requirement that businesses must purchase in addition to these plans. BOP and CPP also do not cover flooding or professional liability coverage, which you can purchase separately. What both BOP and CPP have in common is they allow you to add and remove different types of coverage.
Why the Right Policy Is Crucial for Your Business?
Deciding between BOP, CPP or other types of business insurance requires careful examination of company risks. BOP usually works well for small companies with minimal risks, while CPP is for more risky businesses that need unlimited coverage options. The option for saving money is BOP, while the more effective option for variable coverage is CPP.
Either way, your company will be protected against a wide variety of lawsuits. Any business can get sued, especially if it’s a physical establishment open to the public. People can trip and fall, and your company could be held liable. Both BOP and CPP pay all your legal expenses for cases that end up in court.
Need help deciding what type of business insurance you really need? Contact us at East End Insurance Agency. We provide high-quality customer service by answering your questions about business insurance. Whether you have an existing policy or are ready to buy a new one, you should be aware of everything your coverage includes. Talk with our experts so you can make an informed choice.