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.
The main difference between these two policies is the options that are available to add and remove coverages. 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 CPP can be built from the ground up. The coverage options with a CPP are almost unlimited. A BOP is designed for more smaller businesses with less risk, while a Commercial Package policy is meant for a more risky business.
Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters – running your business.
The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet’s intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.
If you had an incident happen in which your property was damaged, or someone was injured on your premises and decided to sue you and take you for all you got, would you be able to sustain the hit to your wallet? In the litigious and unpredictable society we live in these days, it is better for you to invest in the protection than to take the chance. Even if nothing ever happens, won’t you sleep better at night knowing you are protected from these huge financial losses? Insurance companies are there for you when you need them most, and having a Commercial Package or Business Owners policy is the first step in the right direction for your peace of mind.