Business Owners Policy vs. Commercial Package Policy
Small businesses are the backbone of Tennessee’s economy. That’s more than just what we believe at Farm Bureau Insurance of Tennessee—it’s a fact. Over 99% of businesses in Tennessee are small businesses, according to the U.S. Small Business Administration. While our industries in the Volunteer State range from construction and retail to real estate and agriculture, there’s one thing all these businesses have in common: They deserve the right protection.
Running a small business can be complicated, but one element you shouldn’t have to worry about is whether your business insurance covers your business’s unique needs. At Farm Bureau Insurance of Tennessee, we offer several types of coverage so you can rest easy after a hard day’s work knowing your business is protected.
In this blog, we’ll explore two main types of business insurance, including what each covers and what sorts of businesses each is suited to:
Business owners policy (BOP)
What is a BOP?
A business owners policy (BOP) provides comprehensive protection against major property and liability risks. A BOP typically includes:
Business property insurance to help cover your business property against fire, theft, or natural disasters.
Liability coverage to help protect your business from lawsuits.
Business interruption insurance to help with lost income and operating expenses if your business closes temporarily due to a covered event.
A business owners policy may be right for your business if your insurance coverage needs are relatively straightforward. While a BOP offers a simplified package that makes it easy to get the protection you need, our policies are also customizable. So, if there are additional considerations you need, your local Farm Bureau Insurance of Tennessee agent can talk to you about what else your BOP may be able to cover.
What kinds of businesses should have a business owners policy? Here’s a list of some common businesses and organizations that have BOPs:
Retail businesses
Churches
Restaurants
Hair salons
Strip malls
Office condos
What is a CPP?
A commercial package policy (CPP) offers flexible coverage options that can be tailored to suit your business’s needs, all wrapped up in a convenient package. Consider this “all in one” protection for businesses that have more insurance needs than a BOP might cover. Like a BOP, your CPP will include coverage for your business property as well as liability coverage. And it will also provide insurance for the risks that are specific to your business’s industry. Your local Farm Bureau Insurance of Tennessee agent will discuss your business with you to determine your customized coverage. What kinds of businesses need a CPP? Generally, a CPP is suited to businesses that need specialized coverage because of the diverse activities they conduct. Here are some examples of businesses that may have a commercial package policy:
Contractors, such as painters, cleaners, and landscapers
Commercial real estate
Manufacturing
Does my business need a BOP or CPP?
If you aren’t sure what type of policy would be best for your business, you don’t have to navigate that decision alone. A Farm Bureau Insurance of Tennessee agent is your trusted partner in determining the protection your business needs, so that you can have peace of mind to focus on running it. Reach out to an agent today!
