The primary difference between a Business Owner Policy (BOP) and a Commercial Package Policy (CPP) is that a BOP is a pre-packaged bundle, while a CPP is not. When you purchase a BOP, you know exactly what policies you are getting. On the other hand, when you acquire a CPP, you can choose the coverages you want to include, although it typically also includes general liability coverage and property coverage. A BOP offers a fixed set of coverages, with limited opportunities for customization.
It typically includes property, liability and business interruption insurance. A CPP, on the other hand, allows for more flexibility in terms of coverage selection. It usually includes property and liability insurance, but people insured with a CPP can add and subtract additional coverage to meet their specific needs. Business insurance is essential for protecting everything you have worked hard to build.
If you are just starting out and assessing your risk profile, a BOP may be sufficient for your needs. However, if your company is larger and has been growing for years, you may need more comprehensive protection than what a BOP offers. In this case, you should consider adding additional endorsements such as cyber liability insurance, Inland Marine and Business Crime to your CPP. Both BOPs and CPPs are designed to save businesses money while providing comprehensive coverage. Most CPPs offer some level of commercial property and liability coverage to protect a company's physical assets; however, all additional insurance coverage and endorsements should be added separately.
