When determining what type of insurance policies your business will need, it’s important to understand the different coverages and their functions. For example, were you aware that there are two types of Michigan Business Package Policies you could obtain for your company? The first is a BOP, or Business Owners Policy. A BOP is standard for small-to-medium sized businesses and covers a wide variety of exposures; property insurance, general liability, and more. A Commercial Package Policy (CPP) on the other hand, gives larger companies control by offering only the coverages necessary, bundled into one policy. These coverages could include business interruption, general liability to cover the costs of litigation, property off-site, and much more.
A BOP offers comprehensive coverage with the flexibility that small-to-medium sized businesses need by combining protection at a more affordable cost, as it is typically cheaper to purchase a bundle rather than buying each coverage separately. An effective BOP will cover your business against lawsuits that claim your company is responsible for property damage or bodily injury and will protect your physical property against loss and damage.
If your business is on the larger size, a CPP will achieve for you what a BOP achieves for your smaller counterparts. This is a means of providing property insurance for you while also combining other important policies such as inland marine, boiler and machinery, commercial auto, and more. When determining which coverages are right for your company will look at a variety of factors, such as the risks your business is regularly exposed to, what commercial buildings, vehicles and equipment are critical to your business operations, and if you are prepared financially for certain risk exposures.
Package policies make sense for businesses of any type because they provide all-inclusive protection and ensure that any gaps in coverage will be taken care of. At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we pride ourselves on forming strong customer and community ties throughout Washtenaw County by serving as insurance consultants and advisors. For more information about our various products and services, please contact us today at 855.395.6316.