A Commercial Package Policy, also known as a CPP, allows your business to take a flexible approach to obtaining insurance coverage by allowing the business to pay out a smaller premium than it would if it purchased a separate policy for each risk. Commercial package policies afford companies a high degree of customization, and the final policy premium depends on the risks that are being covered, as well as the number of coverages that are being combined.
While a Business Owners Policy (BOP) also combines multiple coverages, it includes a variety of standard coverages. Before purchasing a commercial package policy, it is important that a business understands the risks that it faces. This type of policy only covers very specific risks like boiler and machinery, inland marine, and other coverage options. It does NOT include many of the standard coverages found in the BOP, so if the insured party does not include insurance against a particular event then it will find itself without coverage. This type of policy also doesn’t cover workers’ compensation, life, health, or disability.
A Commercial Package Policy is typically written for small to medium-sized businesses accounts, combining two or more lines of insurance coverage. Typically businesses such as light manufacturing, processing businesses, service businesses, habitational, retail, office, and wholesale companies are eligible for a Commercial Package Policy. The benefit of such a policy is that it helps to eliminate coverage gaps and overlaps while also reducing premiums.
For example, a Commercial Package Policy might include insurance for your business’s property, auto insurance, and business liability under one policy and Declarations Page; it could also include an Inland Marine Floaters, specifically designed for the property you own that is movable or moving. Other needs specific to your business may also be included in a Commercial Package Policy.