Businessowners Policy (BOP) vs Commercial Package Policy (CPP)
Businessowners Policy (BOP) and Commercial Package Policy (CPP) – Morse Insurance’s Most Frequently Asked Questions Answered.
Whether you are embarking on a new business venture, are a serial entrepreneur, or own an established company that continues to grow year after year, having the proper business insurance in place is essential to protect everything you’ve worked so hard to build.
Business insurance, as a concept, is relatively straight forward to understand. It is a policy or series of policies that protects you and your business assets from covered events, including fire, theft, and vandalism. On the other hand, understanding the various types of policies, including the difference between a Businessowners Policy (BOP) and a Commercial Package Policy (CPP) can be difficult, not to mention confusing, especially when trying to determine what policy is the right fit for you.
Morse Insurance has been serving the insurance needs of Southeastern Massachusetts business owners for over 65 years. In addition to helping safeguard hundreds of local businesses, our experienced team of commercial insurance professionals has answered countless BOP and CPP-related questions over the years. Some of the most common being: What does a BOP cover? How is a BOP different from a CPP? Is a CPP right for me and my business? And, do I need a prepackaged insurance policy for my small business?
Educating and empowering our customers so they can make informed decisions about their business insurance needs is, of course, very important to us here at Morse. Therefore, if you are here today in search of information about BOPs and CPPs, you’re in luck. Below are easy-to-understand answers to four of our most frequently asked business insurance questions.
What is a BOP?
Generally speaking, a BOP is a prepackaged insurance policy that includes three essential commercial coverages: Business Liability, Commercial Property, and Business Interruption Insurance.
- Business Liability covers related legal and medical costs, up to the limit of your policy, in the event someone sustained an injury at your business, while using one of your products, or partaking in a service you provide.
- Commercial Property protects your building and its contents, including computers, office furniture, mechanical equipment, inventory, and more.
- Business Interruption Insurance provides financial coverage should you need to close your doors temporarily due to a covered loss.
A BOP is a good solution for most small and mid-sized businesses who have minimal risk, including boutique clothing stores, pizza shops, and medical offices. While it’s true that the policy comes preloaded with coverages, business owners do have the option to add supplementary endorsements, like Cyber Liability, Inland Marine, and Business Crime Insurance, to enhance their overall protection. Another perk of choosing a BOP is that most insurance carriers are able to offer a straightforward and streamlined underwriting process.
There is no denying that a BOP provides a great foundation of commercial insurance coverage; however, not every business may be eligible to take advantage of its offerings. In fact, organizations that have grown substantially or face unique liability exposures may need to consider a different kind of insurance program, such as a CPP.