A significant amount of the business in the United States is generated by small to medium size business. Collectively, they have similar needs for insurance but individually, they may also have unique needs so the best idea is for the business owners to contact a knowledgeable insurance professional.
The Businessowners Policy covers most of the insurance needs for small to medium size businesses. This policy contains a package of insurance coverages designed to simplify the insuring process for the insured, the agent and the insuring company.
Look at the types of eligible businesses that qualify for a BOP. Can you think of some factors that might make those businesses better covered by a commercial package policy?
Clues: Contractors have a large exposure for mobile equipment. How might this be a factor in the decision to purchase a BOP?
Restaurants may rely on deliveries from a distant location. What happens when that distant location can't provide them with the products they need to stay in business?
Bring some ideas to class on November 20th.
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Hi Barb,
We are just doing a test in class!
Carol
Many "main street" businesses could benefit from the crime coverages provided by a CPP rather than a BOP.
Apartments and office buildings covered under a BOP forfeit significant advantages compared to a CPP in the case of equipment breakdown coverage.
Restaurants who suffer significant business income and extra expense losses because of equipment breakdown would be better covered under a CPP.
Contractors are exposed to high degrees of liability, and would be supplemented by the larger limits provided by a CPP.
Restaurants exposed to employee theft would benefit from the larger limits provided by a CPP.
I agree with what Andrew stated about how certain businesses would benifit from the CPP rather than the standard BOP. This seems as one of those instances where the coverage on the business would be more secure, or there would be more protection provided.
I believe smaller business's or even more in depth restaurants that are along the lines of mom and pop stores would better be covered on the CPP if they were around more crime areas.
For example a small store in Olivet, MI with a small college like Olivet would be better to go along the lines of a BOP because of the small amount of theft exposure. However you get up to the bigger campus's like Michigan State University and there is a much larger exposure for theft so a broader coverage on a CPP would be a better idea.
Also it is much harder to underwrite those small business's located so near to such a big university, compared to a private college campus like Olivet.
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