Package Policy

What Does Package Policy Mean?

A package policy is an insurance product that provides coverage for multiple types of insurance. For instance, both liability and property insurance may be included in a package policy. Businesses seeking commercial insurance often purchase commercial package policies. Small businesses most often buy this kind of bundled coverage through a Business Owner’s Policy, which pairs general liability and property coverage in one contract.

Insuranceopedia Explains Package Policy

Package policies offer several benefits. First, they allow policyholders to purchase multiple types of insurance from the same insurer within a single policy. This saves policyholders the time and effort of shopping around for individual policies from different insurers. Second, package policies are often more cost-effective than purchasing each policy separately. This is because they typically offer lower rates, thanks to a “multi-line discount” that is applied when multiple policies are bundled together. For personal coverage, the most familiar version is a home and auto bundle, and a comparison of the best home and auto insurance bundles shows how much the multi-line discount usually works out to in practice.