Opening your own business is an exciting time. Though with all the decisions you need to make to help transform what you've worked so hard for into reality, things like choosing the right insurance policy can be daunting.
One decision you will face is which insurance option is best for your business; a Business Owners Policy (BOP) or a Commercial Package Policy (CPP)?
A BOP is a "package" of essential insurance coverages designed for small to medium-sized companies. Whether you own a nail salon, an accounting office or a coffee shop, for example, a BOP policy combines protection for all major property and liability risks into one policy. A typical BOP policy includes:
A simple General Liability policy provides only general Business Liability Coverage. Businesses shopping for insurance in their early stages often buy GL-only policies because they have little property, are more concerned with liability risks, or may be asked to, "buy a GL" by lessors for the space they rent.
BOPs are much more comprehensive, and may only cost a little more. In addition to general Business Liability Coverage, they protect business property, and business interruption - with coverages customized to specific business. BOPs are far more flexible for your growing needs and a better value overall.
It is important to know BOPs do not cover all risks related to running a business. Every business has unique risks depending on products they sell, services they provide, or operations they perform. BOPs, like GL only policies, do not cover professional liability/ professional services (though that option is available for a few business types), auto insurance, workers' compensation, or health and disability insurance. You will need separate policies to cover those matters.
What types of businesses could benefit from a BOP? A BOP generally makes sense if your business:
How to purchase a BOP policy from Stillwater: