For many small businesses, a standardized Businessowner's Insurance Policy – or BOP - is sufficient protection for the risk. These types of policies are used widely for small restaurants, main street retail, or offices.
A BOP contains basic liability and property insurance coverage. However, if your business has some specialized risk due the complexity or type of operations, you may need a customized commercial package policy.
Similarly to a BOP, a commercial package policy enables you to bundle various different types of coverage under a single insurance policy. However, a commercial package can provide for higher limits of coverage, more specialized coverage and different premium rating mechanisms.
Depending on the specific needs of a particular business, a commercial package can include property coverage, inland marine coverage, auto coverage, general liability, professional liability, other specialized liability coverages, umbrella coverage, and many other types of insurance.
We often use commercial package policies for businesses such as contractors, manufacturers, and any business with special risks.
Unlike most standard BOPs, most commercial package policies are audited annually for exposures such as payroll and sales. Usually, if a business has general liability, the policy will be based on estimated exposures and then audited at the end of the policy term for accuracy.
Coverages Not Included
Some examples of policies that cannot be included in a commercial package include workers compensation insurance or health insurance.
Most insurance companies will have separate policies for auto insurance and umbrella insurance as well. But, it depends on the specific insurance carrier.
How Do You Choose Between A BOP And A Commercial Package Policy?
Every business faces different types of risks, and nobody knows your business as well as you do. That being said, as a small business owner you most likely do not have the time to sit down and research the hundreds of different insurance companies and policies in the marketplace. Working with a trusted independent insurance agency to help provide you the guidance in choosing a company and the right policies. Feel free to fill out our quote form to receive a proposal from us for a commercial package insurance policy.
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