Commercial Package Policy
What Does Commercial Package Policy Mean?
A commercial package policy (CPP) is a bundled business insurance solution that covers various risks, such as commercial crime, commercial property, and general liability. The general liability portion of a CPP responds to the same claims a standalone general liability insurance policy covers, like customer injuries on business premises or damage a business causes to someone else’s property. It provides businesses with flexibility in selecting the coverage they need, often at a lower premium than if each type of policy were purchased separately.
Insuranceopedia Explains Commercial Package Policy
Insurance companies offer commercial package policies (CPP) to small and mid-sized businesses, which typically require less liability coverage than larger companies. This option is appealing to such businesses because it allows customization within a single policy, offering multiple types of coverage for property, automobiles, general liability, and more. Businesses shopping for bundled coverage often compare a CPP against a business owner’s policy, which packages similar coverages but comes in a more standardized format aimed at smaller, lower-risk operations. However, business owners should be aware that CPP does not cover life, health, disability, or workers’ compensation, and they may need additional coverage for specific risks not included in their policy. Companies with significant inventory, machinery, or physical locations sometimes also layer on specialized commercial property insurance if their CPP limits fall short of what their assets are worth.
