Understand the difference between BOP and CPP, the commercial insurance packages that protect your company.

A commercial insurance policy is crucial for any business looking to thrive in the U.S., regardless of size. From a big tech company like Google to your neighbor’s garage sale, commercial insurance can be the key to the survival of any business.

However, understanding the various insurance options available can be overwhelming. Two common types of business insurance policies are the Commercial Package Policy (CPP) and the Business Owner Policy (BOP). While both allow you to bundle separate insurance policies into one, there are some essential differences between the two.

Let’s explore the key differences between these two types of insurance so you can decide which policy is best for your business.

What is a Business Owner Policy (BOP)?

A Business Owner Policy (BOP) combines General Liability and Commercial Property coverage into a single policy, and it can also include Business Interruption insurance. It’s usually cheaper than purchasing these coverages separately.

This policy is designed specifically for small businesses and was created to be a simple and practical way to protect companies that don’t have high risks or time to waste.

Which businesses qualify for a BOP?

Several types of small businesses can qualify for a BOP, but the insurance provider defines the selection criteria. Typically, the requirements are as follows:

  • Fewer than 100 employees
  • Revenues at or below $3,000,000
  • Occupy up to 25,000 square feet (around 2,300 m²)
  • Own buildings of up to 100,000 square feet (about 9,300 m²)
  • Most of the operation happens at the business’s location

The list of eligible businesses is extensive. Check which risk classes can be included. Talk to a Breezy Insurance agent and get your questions answered!

However, some of the most common businesses that fit the BOP criteria include:

  • Service offices
  • Wholesale stores
  • Retail shops
  • Service providers
  • Contractors
  • Small restaurants

What is a Commercial Package Policy (CPP)?

A Commercial Package Policy (CPP) is a commercial package that allows you to bundle several business insurance policies, each with different limits for covered claims, to meet your company’s specific needs.

It includes General Liability and Commercial Property coverage but offers the flexibility to add endorsements for additional coverage, such as:

  • Commercial auto insurance
  • Commercial crime insurance
  • Business Interruption
  • Inland Marine Insurance
  • Professional liability insurance
  • Electronic data processing coverage
  • Errors & Omissions (E&O)
  • Employment practices liability insurance (EPLI)
  • Equipment breakdown
  • Pollution liability
  • Commercial umbrella insurance

With a CPP, you can set higher coverage limits for areas with greater risk exposure. For example, you can adjust coverage for risks like vandalism or bodily injury.

You can also set lower limits for risks that are less likely to result in a claim, helping keep your premiums more affordable.

Like with a BOP, bundling multiple policies is generally cheaper than purchasing them separately.

BOP vs. CPP

Now that we’ve covered the main features of insurers’ commercial packages let’s examine the key differences between BOP and CPP.

Customization

CPPs offer more flexibility in customizing coverages to meet the specific needs of larger businesses. On the other hand, BOPs are standardized and better suited for smaller businesses with more common needs.

Business size covered

As mentioned earlier, BOPs are specifically designed for small and medium-sized businesses, while CPPs cater to medium to large businesses.

Pricing

Due to broader coverage and customization options, CPPs are typically more expensive than BOPs. BOPs offer an economical solution for small businesses by bundling several coverages into one package.

Additional coverages

A CPP can provide more specialized coverages for unique risks larger businesses face. At the same time, a BOP typically offers standard coverage options but can include additional protections tailored explicitly for small businesses.

Make the right decision for your business

Choosing the right insurance for your business is a critical decision. Speak with a Breezy Insurance commercial insurance expert today to find the coverage that best suits your needs—and your budget. Don’t leave your hard-earned accomplishments vulnerable; get a commercial insurance quote today.