Simplified Commercial Lines Portfolio Policy
What Does Simplified Commercial Lines Portfolio Policy Mean?
A Simplified Commercial Lines Portfolio (SCLP) policy is a type of insurance that covers business and personal property. It pays for damage to buildings and personal property owned by the business, as well as improvements on the building financed by people other than the insured.
Insuranceopedia Explains Simplified Commercial Lines Portfolio Policy
Personal insurance protects a person, while commercial insurance protects a business. The latter gives security to a country’s economy because the business sector, which is a strong driver of economic prosperity, is secure in the knowledge that an insurer will save it from a disruption in its operations.
An SCLP policy protects the business and its properties from three perils: basic, broad, and special cause. Basic perils include fire and vandalism, broad perils include falling objects such as ice, and special causes are those such as earthquakes.
The business owner may request coverage from the insurer beyond those mentioned above.