When you begin researching insurance for your small business, you will probably run into many unfamiliar acronyms. For instance, you might see a BOP compared to a CPP. These refer to business owners policies and commercial package policies. Because these two kinds of packages of business insurance perform similar functions, you may have a hard time understanding the difference.
Here at Luxor Insurance, we’re here to answer your questions. Before you contact us, you can read this quick comparison of BOP vs. CPP to understand which one you might choose for your own company.
Comparing BOP Vs. CPP Business Coverage Packages
Both a CPP and a BOP offer businesses a way to package different kinds of insurance to simplify coverage and take advantage of discounts for bundling multiple types of protection.
This briefly highlights both kinds of business insurance:
- Business owners policy: This package generally includes such critical business coverage as general liability, commercial property, and business interruption. Insurers may allow some customization.
- Commercial package insurance: Like a BOP, this offers packages of insurance but generally has more flexible options and is intended for bigger companies or more unusual situations.
Often, people associate a BOP with a small business. At the same time, lots of folks think of larger businesses when they discuss a CPP. This understanding might serve as a general rule of thumb because insurers may limit the size and kind of companies that they deem eligible for a BOP. Typically, larger or riskier kinds of businesses will not qualify for a BOP.
Yet, some businesses could qualify for a BOP but still choose a CPP. This is because a CPP generally will offer more flexible options. That makes it a better option for companies that take unusual risks or don’t require all the coverage included in a typical BOP. BOPs indeed have a reputation as a cheaper option for small business insurance. On the other hand, the flexibility of a CPP may make it less expensive for companies with certain requirements.
Many insurers do allow their clients to customize a BOP to some degree. They may also offer packages that they’ve tailored to specific types of businesses. For instance, the BOP for a donut shop might not look exactly like the BOP for a small residential construction company. For most small businesses, it’s best to begin with a risk assessment. After that, an experienced business insurance agent can help you compare available options to determine the best fit. Also, note that neither of these business insurance packages may include all the coverage your company might need. Typical examples of insurance you probably won’t find in an insurance package include flood or professional liability insurance.
Does Your Small Business Need a BOP or CPP?
At Luxor Insurance we want to learn about your business to suggest the combination of business insurance policies that will help you manage risks. We can help you determine what you need and the most cost-effective way to purchase it. To get started, call us today at 317-774-7740 or request online quotes. Besides your business, we can also help you cover your home and vehicles.