Differences Between Business Owners Policy and Commercial Package Policy

​As commercial insurance is complicated, there is also an endless list of risks and challenges that you need to address as to why there are many policy options to help you. For business owners and operators, insurance coverages can be confusing, so the insurance industry instigated policy bundles, like Business Owners Policy (BOP) and Commercial Package Policy (CPP). These two policies are often interchangeable, so here are the differences between the two to enlighten you.

Business Owners Policy (BOP) – Essential Core Coverage
BOPs policies aim to simplify coverage for business owners by targeting firms with similar risk exposure levels despite the variation in consumers and resources. For many businesses, BOPs have an incredible value that is often out-of-the-box solutions, even if its package only offers limited opportunities for customization.

In most cases, BOPs do not have worker’s compensation, professional liability, commercial auto, or cyber liability in a package, so you need to purchase them separately. However, its streamlined package combines three core coverages necessary for small and medium-sized enterprises (SMEs).

• Commercial Property Insurance
• General Liability Insurance
• Business Income Insurance

Commercial Package Policy (CPP) – Customized Coverage in One Policy
Unlike with BOP, a CPP provides better flexibility for medium and large-sized businesses to address risk exposures using its different types of coverages. CPP packages generally start with these core coverages similar to the BOP.

• General Liability insurance
• Commercial Property Insurance

From these core insurance coverage, these are the common additional coverages, which are dependent on your company’s needs and objectives, such as:

• Commercial Auto;
• Commercial Umbrella Liability;
• Cyber Liability;
• Business Income;
• Inland Marine;
• Equipment Breakdown;
• Professional Liability; and
• Employment Practices Liability.

Commercial Package Policies empower businesses, mainly medium and large enterprises, to build a package of insurance coverages that they aim, need, and want.

What to Choose Among the Two Policies?
There is no absolute answer to this matter, as choosing between a BOP and CPP depends on the specifications and details of your business or a particular industry, including risk exposures and tolerance.

Always remember to analyze your business’ strengths, weaknesses, opportunities, and even threats from commerce. Knowing your company inside and out enables you to manage it expertly.

At All Things Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (763) 645-5450. Get your free quote today by CLICKING HERE.