Business guide · 2 min read

BOP vs. commercial package: which one fits a small business

Most small businesses on Kercheval or Mack are insured on a business owner’s policy. It is a good product for what it is. It is also a product with edges, and knowing where they are is the difference between “covered” and “surprised.”

What a BOP bundles

A business owner’s policy combines commercial property (your building if you own it, your contents, tenant improvements, equipment, stock) with general liability (injury and property damage to others arising from your premises and operations) and usually business income, which replaces lost revenue after a covered loss shuts you down. It is priced as a package and written for lower-hazard businesses: offices, retail, service shops, restaurants below a certain size, small apartment buildings.

What it does not include

Workers’ compensation, commercial auto, professional liability, cyber, and liquor liability are separate. Some can be endorsed onto a BOP; most are separate policies that Carly packages alongside it. A BOP also has eligibility limits — square footage, revenue, class of business — that a growing company can cross.

When a package policy makes sense

A commercial package policy (CPP) is the modular version: you choose the coverage parts — property, general liability, inland marine, crime, equipment breakdown — and set each limit. Contractors with tools and equipment on the road, businesses with multiple locations, higher-hazard operations, and anyone who has outgrown BOP eligibility usually end up here. It costs more to build and gives you control over every line.

Either way, the questions are the same

Revenue, payroll, square footage, building ownership, years in business, what you actually do, and your loss history. The answers decide eligibility and price for both forms. The business quote on this site asks for them once.

This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.

Common questions

People also ask.

Is a BOP cheaper than buying the coverages separately?

Usually, for an eligible business. That is the point of the package pricing.

Does a BOP cover my equipment in a work van?

Only at the premises or within a small off-premises limit in most cases. Tools and equipment on the road need inland marine coverage, which contractors usually add.

Can a home-based business use a BOP?

Often yes, and it is far better than relying on a homeowners policy, which limits business property and excludes most business liability.

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