COMMERCIAL INSURANCE

WHAT DOES A BUSINESS OWNERS POLICY (BOP) COVER?

Insurance companies selling business insurance offer policies that combine protection from all major property and liability risks in one package. (They also sell coverages separately.) One package purchased by small and mid-sized businesses is the business owners policy (BOP). Package policies are created for business that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.


Business Owner Poicies (BOP) include: 


  • Property insurance for buildings and contents owned by the company-- there are two different forms, standard and special, which provides more comprehensive coverage.


  • Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.


  • Liability protection, which covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided. 


  • Business Owners Packages (BOP)
  • Business Personal Property
  • Church Insurance
  • Restaurants, Retail Stores, Self-Storage, General Repair Shops, Auto Body Shops, Paints, Landscapers, Plumbers and Contractors
  • General Liability, Errors and Omissions


BOPs do NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance. You'll need separate insurance policies to cover professional services, vehicles and your employees.

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understanding commercial package policies business insurance

For small businesses without specialized risks, a Business Owner Policy or "BOP" may offer the basic property and liability coverage that you need. But if your company is growing in size and complexity or you face specialized risks due to the nature of your business - you may want to consider purchasing a Commercial Package Policy, or CPP for short.

Customized insurance under one policy

Like a BOP, a CPP enables you to bundle various types of coverage within a single policy. However, while a BOP has limitations--it is only available for certain types of smaller businesses and covers only a few types of risk--Commerical Package Policies are available for a wide range of businesses and can be better customized to the specific needs of your business.

Commercial package policy

Additional Information

  • Property Insurance - Covers damage or destruction of buildings, equipment, inventory and more.
  • General Liability Insurance - Covers costs if someone is injured at your business or from using your product or service. From there, you can add a range of coverages to you CPP, including:
  • Business Income Insurance - Also known as business interruption insurance, this replaces lost revenues and covers extra expenses in the event that your business has to shut down or relocate due to fire, wind damage or other covered losses.
  • Business Vehicle (or fleet) Insurance - Covers vehicles owned and used by your business.
  • Business Crime Insurance - Covers losses from burglary, computer fraud, employee dishonesty and other business crimes.
  • Commercial Umbrella Policy - Increases and broadens liability coverage, filling in gaps left by other coverages.
  • Electronic Data Processing Coverage - Covers costs asociated with the loss or damage of electronic date processing media or equipment.
  • Equipment Breakdown - Also known as a boiler and machinery insurance, this covers losses from the malfunction of heating, electrical, air conditioning, telephone systems and other equipment.
  • Employment Practices Liability - Covers costs tied to disputes with employees over termination, discrimination, sexual harassment and other employment issues.
  • Inland Marine - Covers the transport of goods over water and land, providing comprehensive protection for assets that are movable or mobile in nature, while in transit--such as from a warehouse to a store--or in storage.
  • Pollution Liability - Covers costs related to pollution, including clean-up and personal injury.


A range of other types of insurance covering professional liability, supply chain risks, terrorism, farming or ranching losses, and more can also be included in a CPP.


What a CPP doesn't cover


A CPP can provide your business with coverage against a broad range of risks. With that said, it's important to recognize that your CPP will not include:


  • Directors and Officers (D&O) liability
  • Health and disability
  • Life Insurance
  • Workers compensation


These coverages must be purchased separately; discuss your additional insurance needs with your professional.

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