A commercial package policy (CPP) is a type of insurance policy that covers various dangers, such as liability and property risk. A commercial package policy enables a company to receive insurance coverage in a flexible manner. CPPs also offer the advantage of allowing you to pay cheaper rates than if you got a separate policy for each risk. A Business Owners Policy, or BOP, may provide the minimum property and liability coverage required by businesses without specific risks. However, if your company encounters particular risks due to the industry you work in, you should consider finding a Commercial Package Policy.
How Commercial Property Packages Work
Commercial package policies are often written by insurance companies for small to medium-sized organizations. These companies may have lower liability requirements since they do not operate huge facilities. Or they simply need supplemental insurance coverage for specific hazards. A modest manufacturing company or car wash operation, for example, is unlikely to require the same level of coverage as a real estate developer. Commercial package policies are very customizable and can bundle two or more coverages into a single policy. While each plan is unique, the average CPP will cover a variety of property and liability risks.
Commercial Property Packages vs Business Owner Policies
We know CPPs sound like BOPs, but they’re vastly different. The fact that BOPs and CPPs are insurance bundles is clearly the most important item they have in common. That is, they are made up of numerous policies. And purchasing them as a package is less expensive than purchasing each of them separately. The primary difference is that the insurance plans that come with a BOP are often predetermined and limited. Insurance companies recognize that general liability, property, and business interruption are policies that the majority of small businesses require, regardless of industry, which is why they opted to package them as a BOP.
Naturally, you can tailor your BOP and add endorsements to make the coverage more flexible. But it will never be as versatile as a CPP. Although a CPP will often contain general liability and property coverage, as these are essential coverages for any business. The options for putting together a more comprehensive insurance plan are far wider when acquiring a CPP. It is important to remember that one is not superior to the other. BOPs and CPPs provide distinct coverage, and both perform wonderfully.
Building a Commercial Property Package
As we said, CPPs are a bundle policy. While BOPs typically only bundle a few key policies CPPs will bundle as many as you need. A CPP starts the same way a BOP does with core coverages:
Commercial property insurance – Covers damage to property, including not only buildings but also merchandise, equipment, signage, and other items.
General liability insurance – Covers expenses if a customer gets hurt on your property or while using your product or service.
Business interruption insurance – Covers lost revenue, unpaid salaries, and rent. Along with a variety of other costs if your business is destroyed and must close for a period of time to renovate or relocate.
After the basic core coverage is picked is where CPPs stand out from BOPs. Other coverages that are often packaged under a CPP in order to provide more broad and expansive coverage for companies with more demanding coverage needs include:
Commercial auto insurance – Covers damage to vehicles owned by your company or private automobiles used for business.
Commercial crime insurance – Financial losses caused by employee dishonesty, burglary, fraud, forgery, and other corporate crimes are covered.
Umbrella insurance – When necessary, broadens liability coverage to bridge gaps in your coverage. And offers coverage for liabilities that may not have been specifically covered by another authorized policy.
Equipment breakdown – Covers losses caused by equipment failure, such as heating, electrical air conditioning, refrigeration, and other equipment problems.
Pollution liability – Covers pollution-related expenses like personal harm and necessary clean-up measures.
Electronic data processing coverage – Covers the costs of electronic data processing media or equipment loss or damage.
Employment practices liability – Covers costs associated with employee disputes involving termination, discrimination, sexual harassment, and other workplace issues.
A CPP can also contain insurance for professional liability, supply chain risk, terrorism, farming or ranching losses, and other risks.
What Isn’t Covered?
Regardless of how adaptable CPPs are and how many types of coverage can be bundled into the package. There are some insurance policies that simply cannot be included in a CPP. If you need any of these policies, you’ll have to purchase a separate policy:
Directors & Officers insurance – Provides liability coverage for corporate management. Shielding directors and officers and their personal assets against claims arising from choices, errors, and “wrongful acts” made while working on behalf of the company.
Key person insurance – A life insurance policy purchased by a corporation on a key executive or employee who is extremely important to the firm’s success.
Workers’ compensation – Covers employee injuries-related damages. Including lost earnings, medical bills, rehabilitation, and, in the worst-case scenario, death benefits and burial expenditures.
Who Needs A Commercial Property Package?
A CPP is more comprehensive since it allows you to combine two or more liability policies. Giving you more coverage alternatives than a BOP. With a CPP, you can boost your coverage limits in places where you are more likely to face a claim. While decreasing your policy limits in locations where you are less likely to face a claim.
A commercial package coverage is frequently matched up with mid-sized companies and those with higher risks. A CPP is especially beneficial for small and medium-sized companies that want a customized approach to risk management. Since it gives coverage alternatives that go beyond a BOP and underwriting that is tailored to their individual needs.
The Cost of A Commercial Property Package
One of the key features of a CPP is that businesses can tailor their coverage by adding a variety of riders to the package. Naturally, the more types of coverage you include in your CPP, the higher the cost. Aside from how many supplementary coverages you add to your CPP and how complex your coverage is, insurers will consider various aspects to determine how much you will have to pay for your CPP, including:
Industry
If you work in a high-risk industry, your CPP will be higher. Construction companies, for example, will pay substantially higher premiums than accountants since their liability and property risks are much higher.
Location
Businesses in large cities typically pay more for a CPP than those in rural areas, because the more populated your location is, the more vulnerable your property is to crime and vandalism.. Additionally, if you live in a region of the country with a history of natural disasters such as hurricanes and earthquakes, your CPP will cost significantly more than if you were located in a low-risk region of the country.
Number of Employees
Whether you should get a BOP or CPP is largely determined by the size of your company. The more employees you have, the more likely it is that a BOP will not provide adequate protection. Also, if you’re a company with more than 100 employees that no longer qualifies for a BOP, you may need a CPP if you want to bundle your policies. It’s important to note that the amount of employees you have will raise your CPP premiums.
Property Value
The higher your CPP premium, the higher the value of your property and the more difficult and expensive it is to replace your physical property, equipment, and inventory.
Claims History
If your company has a history of claims, particularly serious claims that resulted in big settlements from your insurer, you will pay much more for your CPP than a company that has had very few claims in recent years.
Why You Need It
Having the right commercial package policy gives your company peace of mind, knowing that if your property is significantly damaged or a third-party injures themselves on your property and sues you for damages, you will have the financial support you need to get through the ordeal. Running a business in today’s highly unpredictable and litigious environment can be a very stressful activity if you are unprotected and running your business with the knowledge that one unforeseen accident and costly lawsuit might put you out of business for forever.
Even if your business is fortunate enough to avoid a natural disaster that damages your property or a lawsuit from a customer who was injured on your property, having the right liability and property coverage allows you to confidently run your business and take calculated risks knowing that your business is protected from things beyond your control.
Help From EZ
Whether you are searching for commercial insurance or group health insurance, EZ.Insure can assist you. Our agents work with the top insurance providers in the country to locate the best insurance for your company and its employees. In fact, by working with your budget to get you the greatest coverage, we can save you hundreds of dollars per year. If you have any questions, please contact us at (855) 694-0047 for group health insurance assistance and (855) 694-0047 for commercial insurance. Or put your zip code into the bar below to get your instant free quotes.
Seeking for advice for your new business? EZ.Insure provides not only ease with insurance, but also these simple guides. Reading them should arm you with the knowledge you’ll need to navigate the business world, like what our policies cover. Curious about more than just a Business Owner’s Policy? See our Business Insurance Masterlist and our Beginner’s Guide to Worker’s Compensation. Here, we’ll take a look at what our Business Owner’s Policy (BOP) covers, application times, and costs.
Want to start your workday with a smile? Think of the ways you set yourself up for success like coverage.
What is a Business Owner’s Policy?
So, what defines a BOP? One of the most important types of coverage, or at least the most useful for the business owner, is this policy combining both liability and major property insurance. With the combination, both policyholder and insurance company can benefit. The choice of what you actually want to combine is up to you. Here are your options:
General liability
Property liability
Business Income/Interruption
Cyber insurance
The above coverage types extend protection should any property damage, bodily harm, or income loss happen to your company. No one ever wants these types of things to happen, but it is always better to be prepared just in case.
Without a Business Owner’s Policy, you take the financial brunt of any misfortune happening on your company property, including cyber theft. Take for instance if while at your businesses someone slips on a cracked floor and breaks an ankle, if you do not have a business owners policy, and a lawsuit ensues, you will be responsible for any reparations, plus the loss of when you have to shut down for repairs.
When Can You Apply?
The short answer is now! There is no open enrollment for a Business Owner’s Policy. However, you may ask your agent about special offers, especially if they are time-dependant With EZ.Insure, your agent will make sure to get you the best policy for exactly what you need. The best time to apply is when you feel you need coverage.
New products? If you’re moving up in business, you might consider new coverage.
If you feel you are ready for a Business Owners Policy the next step is to reach out to an agent to have any questions answered and get a quote for different types of coverage. You can reach an EZ.Insure agent at PHONE NUMBER. Before you call, write down what you think will be right for your business. If you hold most of your information online, we would suggest adding cyber liability insurance, or, if your business is mostly physical property and equipment, property liability would be best. Taking a small amount of time to take note of your assets will make your application process smoother.
What Is Not Covered?
A Business Owner’s Policy does cover quite a bit, but there are exceptions. Worker’s Compensation and Professional Liability are not covered in a BOP but are solid policies to hold. Remember, Worker’s Comp is mandatory in most cases, but Professional Liability is not. While these are not included in the BOP, be sure to do your research if your company has a high risk for malpractice suits. People make mistakes, but certain professions like doctors need extra protection with insurance.
What Are the Costs of a Business Owner’s Policy?
The average cost ranges between $30 to $200 per month. Of course, this will vary based on your needs. Ask your agent to help keep costs down. Also, keep in mind that while this may seem like an extra bill per month, the median cost of just one business lawsuit is $54,000. That’s the price of a good car. Can you afford a surprise purchase like that? To make matters worse, millions of cases pass through U.S. courts annually. Do you like those odds?
Talk to your friends in the business. What advice could they give you about their own coverage?
The process can be easy enough, especially with an agent on your side. They will have the most up to date information about what level of coverage your company really needs to keep you safe, but not overspending.
EZ.Insure is here to help. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected], or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.
You might think that working from home means you do not need freelance commercial insurance, but that couldn’t be further from the truth. Even though you work for yourself and might not be in a ‘traditional’ job environment you still need to be covered!
Keeping a good workspace is more than just cleaning. It’s also insuring your materials.
Are you working with web design or freelance writing? Are you part of Amazon’s crowd work team or a virtual assistant? The choice to do freelance work is usually made with the many benefits in mind like setting your own hours, choosing daily workloads, or even working from a laptop in your pajamas.
While these are sought after, many new freelancers overlook an important benefit: choosing your own insurance coverage. Without a company over your head, you are not restrained to their options for group health or otherwise. The same goes for commercial insurance since you can be considered a business of one. But like any businesses you will have to put in the work to get the proper coverage. This can be daunting but if you have a professional agent on your side it will be much easier. If you want free advice, quotes, and help to sign up EZ.Insure can help you by calling 888-615-4893.
Why Get Freelance Commercial Insurance?
Like any type of business, even a freelancer is subject to bad luck. Working for a company with group health insurance can give you security, so if you land in the hospital, you have some cushion with your medical bills. When you work for yourself, none of that is the case. So, what will you do if misfortune comes your way?
No matter where you are, you can work a bit better knowing you’re covered.
You can try to justify not getting covered with thoughts like, “But I rarely leave the house?” or “I can take care of myself. This lifestyle proves it.” Do not be misled by these. If you work for yourself, then that means you have to take more care of yourself. As a business of one, your entire career rides on your health and ability to recover in bad times. This is why it is important that you get your own health insurance.
Other than health insurance, you also need a business owner’s policy just like the storefronts, corporate buildings, and bakeries. Just because you work from your laptop doesn’t exclude you from insurance benefitting a business. In fact, this puts you at higher risk for cybertheft, considering your source of income and tools involve the internet.
In essence, freelancers like you deserve proper insurance just as much as an employee at a traditional job. While you don’t work in an office or take lunch breaks, you are subject to the same dangers that befall other workers. You may be in even more danger without the support of a large business behind you.
Which Insurance Types Cover You?
Similar to other businesses, the standard plans will protect you in the same ways. However, unlike most businesses, you will need to file under a small business or sole proprietor. The differences are minor but necessary for the terms of your coverage. Here is the standard set of freelance commercial insurance, and why you need them:
Take a moment to think. If you work from home, why not get insurance from home too with EZ.Insure. It’s quick and easy.
Business Owner’s Policy – As a sole proprietor, business mistakes can be all on you. That makes it worse. Take out a policy to protect yourself in the future. Potential clients will also think better of you when you land on your feet after unfortunate circumstances.
Group Health Insurance – You can apply for Group Health as a sole proprietor, but you must be a legitimate business. Interested in health coverage? If you are interested, you will find a solid start both here and here.
Disability – Whats happens if you break an arm and can’t work? This is a scary time for you, especially when not covered. There are both long-term and short-term options for you.
With any of these plans, also consider adding a Health Savings Account (HSA). These accounts save money and help come tax season. All of these together take the sting out of any bad luck that rolls your way. As a freelancer, you probably already know that your luck can vary from week to week.
Planning for and getting coverage can get frustrating. One other factor freelancers should consider is time. Your time is precious, so why waste it attempting this on your own?
If you are looking for peace of mind, EZ.Insure offers solutions. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected], or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.
