Commercial Package Policy

What is a Commercial Package Policy?

A Commercial Package Policy (CPP) is a type of insurance policy that combines multiple types of coverage into a single policy. It is designed for small to medium-sized businesses that want to simplify their insurance coverage and streamline their insurance buying process.

A CPP typically includes two or more types of coverage, such as general liability, property, and business interruption insurance. It may also include other types of coverage, such as crime insurance, equipment breakdown insurance, and professional liability insurance.

By combining multiple types of coverage into a single policy, a CPP can offer businesses more comprehensive coverage and potentially cost savings compared to purchasing each type of coverage separately. Additionally, a CPP may be customized to meet the specific needs of a business, such as coverage for unique risks or operations.

  • A Commercial Package Policy (CPP) is a type of insurance policy that combines different types of coverage in one package for businesses. CPPs are customizable, and the coverage provided will depend on the specific needs of the business. However, some common coverages that are typically included in a CPP are:

    1. General Liability Coverage: This coverage protects a business from lawsuits arising from bodily injury or property damage caused to third parties.

    2. Property Insurance: This coverage protects a business's property, including buildings, equipment, and inventory, against damage or loss due to events like fire, theft, or natural disasters.

    3. Business Interruption Coverage: This coverage provides compensation for lost income and expenses due to a covered loss that causes the business to temporarily close.

    4. Commercial Auto Insurance: This coverage protects a business's vehicles and drivers in case of an accident or damage to the vehicle.

    5. Workers' Compensation Insurance: This coverage provides benefits to employees who are injured or become ill as a result of their work.

    6. Umbrella Insurance: This coverage provides additional liability protection beyond the limits of a business's primary insurance policies.

    The exact coverage and limits of a CPP will depend on the business's size, industry, location, and other factors. Business owners should work with an experienced insurance agent to customize a policy that meets their specific needs.

  • While a Commercial Package Policy (CPP) is a comprehensive insurance policy that can provide a range of coverages for businesses, there are some things that are typically excluded from a CPP. These may include:

    1. Professional Liability Insurance: A CPP typically does not include coverage for claims of professional negligence, errors, or omissions. Businesses that provide professional services may need to purchase a separate Professional Liability Insurance policy.

    2. Cyber Liability Insurance: A CPP may not cover losses due to data breaches or other cyber-related incidents. Businesses that handle sensitive data or rely on technology should consider purchasing a separate Cyber Liability Insurance policy.

    3. Flood Insurance: A CPP may not include coverage for damage or loss due to flooding. Businesses located in flood-prone areas may need to purchase a separate Flood Insurance policy.

    4. Earthquake Insurance: A CPP may not include coverage for damage or loss due to earthquakes. Businesses located in earthquake-prone areas may need to purchase a separate Earthquake Insurance policy.

    5. Intentional Acts: A CPP typically does not cover intentional acts committed by the business owner or employees.

    It's important for businesses to carefully review their insurance policies and discuss any coverage gaps with their insurance agent to ensure they have the protection they need.