If you’re like a lot of business owners out there, you’re probably worried about the cost of business insurance. And we don’t blame you – insuring a business, even a small one, can get pricey quickly.
But don’t worry:
We’re going to explain how you can save money on business insurance. We’ll tell you what a commercial package policy is and what a BOP is. We’ll outline some of the benefits of getting this type of insurance (we already mentioned one perk in the title of this article.)
So. Without further ado, let’s get started.
What is a business owner’s policy?
A business owner’s policy (or BOP) is a policy for small to medium-sized businesses. A BOP typically includes the two following coverages:
General liability: General liability insurance can protect you if someone gets hurt on your property – like if someone slips and falls. It helps cover your business’s legal responsibility for bodily injury or property damage.
Property insurance: Property insurance can help you repair or rebuild your building if you have a covered loss, such as a fire. It also may cover office equipment, furniture, inventory, machinery, and other business essentials.
And sometimes a BOP includes a third coverage:
Business interruption insurance: Business interruption insurance can help your business if you have a covered loss that forces you to close temporarily by reimbursing you for your lost income.
You may be wondering if these are the only coverages you can have in a BOP. It’s possible to add extra coverages, such as crime coverage, to your policy.
Now, next question: Who’s eligible for a BOP?
To get a BOP, your business has to meet certain requirements concerning the type of business you have, your payroll or income, and the square feet of your building. As we said, BOPs are mainly for small to medium businesses.
Okay. Time to move on to our next package policy: a commercial package policy.
What is a commercial package policy?
A commercial package policy is when you have two or more coverages in a package. For example, you could have general liability, property insurance, and business auto insurance together in a commercial package policy (or CPP.) A CPP is usually more customizable than a BOP, which means that you can add many different coverages to protect your business.
We’ve talked about what package policies are. But now it’s time for the fun part – the benefits of package policies.
What are the benefits of package policies?
1. Price.
True or false? Business insurance is expensive and it’s impossible to save money.
Answer: False.
Package policies can help you save money on business insurance. It’s could be less expensive to buy your various coverages together instead of separately. So, try shopping around for your insurance and investigating different coverage options.
2. Making insurance easy.
When you have a package policy, all of your coverages are right there in a single policy. You’ll just have to manage one policy and voila – there’s all of your coverages.
Next time you’re shopping for business insurance, check and see if either a BOP or a CPP could be a good fit for your business.
Speaking of shopping for your insurance, we could be happy to help you shop for the best coverage at the best rate. Our agents are professionals at getting small business owners the coverage they need without breaking the bank. All you have to do to get business insurance quotes is fill out our quote form or give us a call.
Source:
https://www.thebalance.com/basics-of-package-policies-462772
https://www.investopedia.com/terms/c/commercial-package-policy-cpp.asp