Individuals and businesses both own property, and both may need insurance to protect against the financial loss that theft, fire, or other catastrophic events may cause.
Individuals and businesses generally also need a measure of liability coverage to protect against injuries/damages to other persons and/or their property.
Both types of insurance are available in a variety of ways, such as homeowner's insurance (HO), a businessowner's policy (BOP) for smaller businesses, or a commercial package policy (CPP) for larger ones. There are other, more specialized coverages for certain other protection needs that both individuals and businesses have such as inland marine policies and "floaters" (for transportation and other property-loss perils not covered under standard policy language).
Posted: Wed May 11, 2011 07:22 am Post Subject:
How does a commercial package policy differ from a business owners policy? Or is it that they are similar in nature?
Posted: Wed May 11, 2011 09:26 am Post Subject:
Strictly speaking, they are similar, but they are different in their "construction". You sort of take a businessowner's policy off the shelf, add a declaration page to make it unique, and send it to the insured.
A "BOP" is similar to a homeowner's policy in the sense that there are a number of standard coverages included. As I indicated previously, it's usually written for smaller businesses, especially sole proprietors & mom 'n' pops or small partnerships, as a sort of one-size-fits-all solution for those who want more than just a general liability policy. It can also be customized to provide additional protections not included as standard coverage.
In contracst, a commercial package policy ("CPP") consists of several different "forms" that are "taken off the shelf" and assembled to provide a more specifically-tailored protection solution. It starts with a general liability form, and possibly a business property form. beyond that, the possibilities are manifold.
Some businesses are not at all concerned with employee theft of funds (embezzlement), but others are, and that coverage can be added. Many businesses, especially those in shopping malls or strip centers, have a need for plate glass protection because they have hundreds or thousands of square feet of window glass. But most businesses have no need for "boiler & machinery" coverage, but a manufacturing facility certainly would.
Neither a BOP nor a CPP will cover workers' compensation claims. For that, you need a workers' comp & employer's liability policy.
Posted: Tue May 10, 2011 04:58 pm Post Subject:
Individuals and businesses both own property, and both may need insurance to protect against the financial loss that theft, fire, or other catastrophic events may cause.
Individuals and businesses generally also need a measure of liability coverage to protect against injuries/damages to other persons and/or their property.
Both types of insurance are available in a variety of ways, such as homeowner's insurance (HO), a businessowner's policy (BOP) for smaller businesses, or a commercial package policy (CPP) for larger ones. There are other, more specialized coverages for certain other protection needs that both individuals and businesses have such as inland marine policies and "floaters" (for transportation and other property-loss perils not covered under standard policy language).
Posted: Wed May 11, 2011 07:22 am Post Subject:
How does a commercial package policy differ from a business owners policy? Or is it that they are similar in nature?
Posted: Wed May 11, 2011 09:26 am Post Subject:
Strictly speaking, they are similar, but they are different in their "construction". You sort of take a businessowner's policy off the shelf, add a declaration page to make it unique, and send it to the insured.
A "BOP" is similar to a homeowner's policy in the sense that there are a number of standard coverages included. As I indicated previously, it's usually written for smaller businesses, especially sole proprietors & mom 'n' pops or small partnerships, as a sort of one-size-fits-all solution for those who want more than just a general liability policy. It can also be customized to provide additional protections not included as standard coverage.
In contracst, a commercial package policy ("CPP") consists of several different "forms" that are "taken off the shelf" and assembled to provide a more specifically-tailored protection solution. It starts with a general liability form, and possibly a business property form. beyond that, the possibilities are manifold.
Some businesses are not at all concerned with employee theft of funds (embezzlement), but others are, and that coverage can be added. Many businesses, especially those in shopping malls or strip centers, have a need for plate glass protection because they have hundreds or thousands of square feet of window glass. But most businesses have no need for "boiler & machinery" coverage, but a manufacturing facility certainly would.
Neither a BOP nor a CPP will cover workers' compensation claims. For that, you need a workers' comp & employer's liability policy.
Hope this helps.
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