Many people in East Longmeadow, MA struggle to choose the best policy for their business. This is especially true when CEOs and entrepreneurs compare a business owners policy and a commercial package policy. Not only do some business owners struggle to determine which policy will best protect their business, but many don't even know the difference between the two policies. If you're trying to identify the best policy for protecting your business, here is some information about the key differences between a BOP and a CPP.
Business Owners Policy vs. Commercial Package Policy in East Longmeadow
A business owners policy (BOP) refers to an insurance plan that provides business owners with a bundle of basic coverage. Usually, insurance companies sell such policies at a premium that is less than the cost of all the individual coverage combined. Therefore, policyholders can enjoy a discount by purchasing a BOP plan.
Generally, a BOP will provide coverage for company property and basic liability concerns. While a BOP plan often doesn't provide as much coverage as a CPP plan, the average BOP plan costs far less. Also, not all business owners need the extra coverage provided by a commercial package policy (CPP).
A CPP plan is the best option for businesses who have several unique concerns. These concerns can include commercial crime and other perils. Not only will a CPP plan provide coverage for commercial property, but it will also help protect against commercial crimes, general liability, and commercial liability. Therefore, CPP plans tend to be more comprehensive than BOP plans, but also more costly.
Do You Need an East Longmeadow Business Owners Policy or a Commercial Package Policy?
BOP plans are often best for small to medium-sized companies in East Longmeadow. A BOP plan is an especially economical choice for startup companies. This is because a BOP plan is comprehensive enough to cover the interests of a startup, but not so extensive that a startup pays for coverage they don't need. Therefore, such plans allow business owners to enjoy the coverage they need without paying a fortune.
CPP plans, on the other hand, are often designed for large companies. Generally, a company needs to be in business for a certain period of time before they qualify for a CPP plan. Also, the insurer conditions for a CPP plan are usually more stringent. Therefore, more businesses qualify for a BOP plan than a CPP plan.
Do You Qualify for a BOP Plan?
While many businesses qualify for a BOP plan, not all do. The two factors that will determine your eligibility for a BOP plan are square footage and the type of business. When it comes to the type of business, BOP plans usually cover office buildings, apartment buildings, contractors, and wholesalers. Guidelines related to square footage can refer to rental space or the overall building space. For most BOP plans, the eligibility cutoff is about 25,000 square feet.
In the eyes of many business owners, a business owners policy and a commercial package policy can appear to be one and the same. However, there are a few key differences between the two policies that should cause business owners in East Longmeadow to think twice before selecting a policy.
This material is for informational purposes only. All statements herein are subject to the provision, exclusions, and conditions of the applicable policy. For an actual description of all coverages, terms, and conditions, refer to the insurance policy.
