What’s the Difference Between a BOP and a CPP?

What’s the Difference Between a BOP and a CPPWhen looking for insurance for your business, you’ve likely come across the various “package policy” options that are available to you. There are two main policies: the business owners policy (BOP) and the commercial package policy (CPP). Is there a real difference between the two?

For small businesses without specialized risks, a Business Owners Policy may offer the basic property and liability coverage that you need. But for a company growing in size and complexity, or that may be faced with specialized risks due to the nature of the business, then a Commercial Package Policy may be needed. 

Commercial Package Policy (CPP)

Insurance companies typically write commercial package policies for small or mid-sized businesses with smaller liability needs because they do not operate large facilities, or because they only require additional insurance protection for small risks. For example, a light manufacturing company or car wash facility is less likely to require the same amount of coverage that a real estate developer requires. The policy allows for flexibility and may combine two or more coverages into a single policy. While each plan is specific, the average CPP will cover different property and liability exposures. Coverage options include general liability and property coverage. Additional policies can be added at an additional expense, allowing each business to precisely cover its unique set of risks. Commercial package policies don’t include workers’ compensation or directors and officers insurance

Business Owners Policy (BOP) 

A business owners policy is a type of coverage that may be more appropriate for smaller businesses that do not utilize a lot of square footage for operation. BOPs may cover the building itself and contents, certain business liability and loss of income. Businesses that utilize BOPs may need to obtain additional policies to cover needs that may not be offered by the BOP. 

CPP vs. BOP

A commercial package policy differs from a business owner policy in the sense that while a business owner policy also combines multiple coverages, it often includes a variety of standard coverages that may not be of interest to the policyholder. For example, the policy may consist of business income coverage regardless of whether the policyholder wants this. Commercial package policies only include coverages that are explicitly selected by the policyholder.

Before purchasing a commercial package policy, it is important that a business understands the unique risks that they face. This type of policy only covers specific risks, so if the insured party does not include insurance against a particular event, then it will find itself without adequate protection since this type of policy also doesn’t cover workers’ compensation, life, health, or disability.

About Barnes Insurance Agency

At Barnes Insurance Agency, we specialize in vacation home rental insurance to ensure the protection of your property and assets. We strive to offer customizable solutions to meet your specific needs. For more information, contact us today at (877) 279-2500.

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