Businessowners Policy vs Commercial Package Policy

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.

What is a CPP?

While specific coverages vary by insurance provider, a CPP is a wise investment for organizations that are growing, larger in size, or face specialized and complicated risks. Unlike a BOP, a CPP is not prepackaged and therefore can be fully customized based on a business’ specific needs. Most CPPs do provide some level of commercial property and liability coverage to protect a business’ physical assets; however, all additional coverages and insurance endorsements would need to be added separately. That is why it is imperative that you chose an insurance partner who is experienced enough to help you properly identify all of your business’ unique risks and exposures.

What are the similarities and differences between a businessowners policy and commercial package policy?

Despite the abundance of contradictory information on the internet, a BOP and CPP are not one and the same. One of the most notable differences may be that a businessowners policy is prepackaged and a commercial package policy is not.

When it comes to a BOP, what you see is what you get. The policy is pre-fixed and in most cases, offers some level of property, liability, and business interruption coverage. A CPP, depending on the insurance carrier, typically includes property and liability insurance. However, those insured with a CPP have the flexibility to add and subtract additional coverages to meet their specific needs.

Now that you have a clearer understanding of how these two policies differ, let’s explore how they are similar.

• Both policies offer quality commercial property and general liability coverages
• They both are considered comprehensive and cost-effective insurance options for a variety of businesses types and industries
• The property coverage that comes standard with CPPs and BOPs both respond to a similar list of perils or business threats, including wind damage, fire, vandalism, and explosions

How to determine if a CPP or BOP is right for you and your business?

While a seemingly simple question to ask, the answer is anything but, and that’s because there are a variety of factors to weigh and consider, including the carrier’s underwriting guidelines and the client’s appetite for risk and financial budget.

Assessing insurance needs on a case-by-case basis may not seem like the most effective way to offer coverage, especially given the recent increase in internet-based commercial insurance providers and the promise of “quick quotes.” However, here at Morse, we believe that it is the only way to ensure our clients are properly insured. Our team would rather take the time to get to know you, so we can properly identify your unique insurance and business needs before providing you with a fast quote or offering insurance recommendations. These are just a few of the many benefits business owners can come to expect when they decide to partner with a local and independent insurance agent.

Why Morse, of course, is the perfect partner for all of your business insurance needs.

At Morse Insurance, our number one priority is you, our customer. Which is why we believe in always servicing you the very best way we can. In addition to providing business owners with comprehensive policies and superior customer service, our team of seasoned agents strives to educate and empower business owners. This approach allows us to provide the information and insights business owners need to make informed and strategic decisions about their insurance coverage, ensuring they are property protected. It also opens the door for future collaboration and communication.

Whether a BOP, CPP, or another customized business insurance program is right for you, Morse will help you develop a plan that not only meets your needs but your budget as well. But, that’s not all. Our local team is dedicated to supporting you and your evolving needs. In the event you begin questioning your coverage or experience a costly loss, the Morse team will be by your side, assisting you every step of the way.

If you’re ready to start a relationship with a local and dedicated agency with over 65 years of business insurance experience, and a team who truly cares about their customers, contact Morse Insurance today at 508-238-0056 or visit us at one of our four convenient Massachusetts locations.