Business Insurance
At Farm Bureau Insurance of Tennessee, we understand the variety of insurance needs for businesses in Tennessee. Whether you're a new startup or a well-established operation, the unforeseen can disrupt even the best-laid plans.
Common questions about business insurance
What is the difference between a business owners policy (BOP) and a commercial package policy (CPP)?
The main difference between a business owner policy (BOP) and a commercial package policy (CPP) lies in their target businesses and coverage flexibility. A BOP is a pre-packaged insurance solution ideally suited for small to medium-sized businesses with straightforward insurance needs, combining general liability and property coverage. It's perfect for businesses like retail shops, small offices, or restaurants.
On the other hand, a CPP is designed for larger or more complex businesses requiring a higher degree of customization in their insurance coverage. It accommodates a broader range of risks and is customizable to include various coverages, making it suitable for larger-scale manufacturers, contractors, or businesses with unique insurance needs. While BOP offers ease and convenience for standard risk profiles, CPP provides tailored coverage for more complex and extensive insurance requirements.
What types of businesses benefit most from a business owners policy (BOP)?
A business owner policy is most beneficial for small to medium-sized businesses, particularly those that have a physical presence such as retail stores, restaurants, and service-oriented businesses. Businesses that have significant property assets, require liability protection, and face risks like business interruption can find a BOP especially advantageous. It's a comprehensive solution for businesses seeking a balance of coverage, cost, and convenience.
How does a business owners policy (BOP) differ from general liability insurance?
General liability insurance is a component of a BOP but on its own, it only covers third-party liability claims for bodily injury, property damage, and advertising injury. A BOP, on the other hand, is a more comprehensive package that typically includes general liability insurance, property insurance, and business interruption insurance. This bundled coverage provides broader protection for a business, covering more than just liability risks.
Can I add additional coverages to my business owners policy (BOP)?
Yes, you can add additional coverages to your BOP to suit your specific business needs. Common additions include professional liability, employment practices liability, and specific property coverages for unique or valuable assets. These additional coverages can be tailored to address the unique risks associated with your particular business industry or operations.
Is a BOP suitable for home-based businesses?
Yes, a BOP can be suitable for some home-based businesses. It depends on the nature of your business operations and the extent of coverage required. Your local Farm Bureau Insurance agent can assist in evaluating your specific situation.
