As a business owner, you may need insurance to protect your business, but what type of insurance is right for your company? Business owners can obtain either a Business Owners Policy (BOP) or a Commercial Package Policy (CPP). There are a few reasons why a business owner may choose a commercial package policy vs a BOP.
Business Owners Policy
A business owners policy can also be referred to as a BOP. This type of policy may be more appropriate for smaller businesses that do not utilize a lot of square footage for operation. BOPs may cover the building itself and contents, certain business liability and loss of income. Businesses that utilize BOPs may need to obtain additional policies to cover needs that may not be offered by the BOP.
Commercial Package Policy
A commercial package policy can also be referred to as a CPP. This type of policy may be more commonly used by larger businesses and those with square footage that exceeds the limits allowed by a BOP. Larger businesses may have greater risks and need the increased protection and flexibility of customization that can come with a CPP. Coverage can be customized to the needs of the business in one package. Small businesses with special needs or high risks may opt for a commercial package policy vs a BOP.