For many businesses there comes a point when their growth requires more stringent requirements in order to protect assets and continue expansion. This certainly can apply to your business insurance policies, but doesn’t necessarily mean spending more on coverage. A startup, or a relatively new company, may be fine bundling basic coverage in a business owners policy (BOP), which generally combines low-priced insurance coverages in a single package.
However, an expanding and more mature company will likely require a more diverse approach when it comes to protecting against unexpected perils. This is where an insurance agent that deals primarily with small or mid-size businesses might suggest looking into the option of a commercial package policy, designed more for those with more substantial needs.
A commercial package policy offers more than a BOP
A small business owner, at one time satisfied with a BOP in place, has to determine exactly which insurance package will satisfy his or her current needs. A business owner’s policy can be somewhat limited in what it can provide, while a commercial package policy can offer a higher degree of customization. Both offer multiple types of policies that are bundled together, but the difference can be somewhat substantial.
For example, a BOP provides coverage for all major property and liability risks, which is perfectly suitable for people looking to save money and need a quick, pre-packaged insurance solution. But a commercial package policy offers many more options, so it’s likely to be a much better solution in that you can tailor it to cover many important aspects of your individual business concerns.
When constructing your commercial package coverages, you can pick from several types of coverage, including product liability, general liability, and professional liability, as well as property, business income, business auto, and even employment practices or commercial umbrella.
Other policies that you may require, but not available within a CPP, can still be purchased as stand alone policies so you will still get all the protection you need. As your needs change you can restructure in such a way that your coverage will always benefit you the most. Speak to an agent today about putting together a commercial package policy for your business.