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 designed to protect businesses. It covers damages to business-owned buildings and personal property, as well as any improvements to the building that were financed by parties other than the insured.
Insuranceopedia Explains Simplified Commercial Lines Portfolio Policy
Personal insurance protects individuals, whereas commercial insurance safeguards businesses. Commercial insurance plays a vital role in stabilizing a country’s economy by ensuring the business sector— a key driver of economic growth—remains secure in the face of operational disruptions, thanks to the support of insurers.
A Simplified Commercial Lines Portfolio (SCLP) policy offers protection for a business and its properties against three types of perils: basic, broad, and special. Basic perils include risks like fire and vandalism, broad perils cover hazards such as falling objects (e.g., ice), and special perils address more severe risks like earthquakes.
Additionally, business owners can request extended coverage from their insurer for risks beyond the standard perils outlined in the policy.
