Commercial Package Policy
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Commercial package policy

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Commercial package policy

A commercial package policy (CPP) combines liability and property coverage into one policy with more flexible protection options. It is often purchased by small and medium-sized businesses with higher risks.

Who needs a commercial package policy?

Small to medium-sized businesses can benefit from using a commercial package policy as part of their risk management plan.

Similar to a business owner's policy (BOP), a CPP bundles general liability insurance and commercial property insurance, and protects against common risks and property damage. However, it allows for more coverage options and higher policy limits. That makes it a good choice for businesses in higher risk industries that might not be eligible for a BOP.

With broad underwriting and customizable limits, a CPP allows business owners to address the specific risks they face with the right amount of coverage. You can get full coverage for your biggest risks while also avoiding paying extra for any coverage you don't need.

A small business owner reviewing the details of their newly issued commercial package policy

Businesses that face a higher risk of customer lawsuits may benefit from a commercial package policy, including:

  • A barber shop that interacts closely with customers each day.
  • A computer repair shop that handles customer laptops, smartphones, and other devices on a regular basis.
  • A grocery store located in a busy neighborhood with high foot traffic.

Insurers may offer similar packages with different names, such as a customer protector package. However, they share the goal of bundling policies to save money and provide broad coverage for your business.

What does a commercial package policy cover?

With a commercial package policy, you can combine one or more of your business insurance policies together, and choose higher or lower limits for different risks.

Typically, a CPP will help cover:

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Third-party bodily injuries

If a customer is hurt on your property, the general liability insurance portion of your commercial package policy can help pay for medical expenses or legal costs in the event of a lawsuit.

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Third-party property damage

The general liability portion of a CPP can help repair or replace damaged customer property. It can also pay legal fees if a customer sues over the damage.

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Product liability

Property damage or customer injuries don't always happen at your place of business. If a business manufactures, distributes, or sells products, it can be sued over any harm those products cause to people or property. Having product liability coverage in a CPP protects against these types of risks.

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Advertising injuries

If someone sues a business owner or employee over an advertising injury, such as libel, slander, or copyright infringement, the liability portion of a CPP can help pay for legal expenses.

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Business property damage

The commercial property insurance portion of a CPP, which is sometimes referred to as business hazard coverage, can help pay for repair or replacement of business property if it's stolen or damaged by fire, a burst pipe, vandalism, or certain weather-related events.

This policy's business personal property (BPP) coverage provides protection for items that are used to run a business, such as computers, machinery, and furniture.

How much does a commercial package policy cost?

A small business owner calculating their CPP costs

The average cost of a commercial package policy is $90 per month, or $1,075 per year.

Your cost is based on a few factors, including:

  • Amount of coverage
  • Business property value
  • Industry and business operations
  • Business location
  • Business income
  • Number of employees

What does a commercial package policy not cover?

While a commercial package policy can bundle coverage for a variety of risks for small and medium-sized businesses, it does not provide all the protection that businesses need.

Typically, a CPP will not include coverage for:

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Employee injuries

Workers’ compensation insurance is required coverage in most states for businesses with one or more employees, and for sole proprietors in riskier professions such as roofing. It covers medical costs for work-related injuries and illnesses, and provides disability benefits while an employee is recovering and unable to work.

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Poor management decisions

Directors and officers insurance (D&O) is a type of management liability insurance that protects a business's board members and officers from lawsuits over the decisions they make.

Businesses can often bundle D&O with employment practices liability insurance (EPLI), which covers legal costs if an employee sues your business over unfair hiring practices or another violation of employee rights. Check with an agent to find out whether you can add EPLI or other coverages to your package policy.

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Other common questions about commercial package policies

Is it possible to add coverage to a CPP?

Yes. Once you have a commercial package policy, you can add additional coverages later to fit your insurance needs.

In addition to commercial general liability and property coverage, a CPP may allow endorsements for:

What is the difference between a commercial package policy and a business owner's policy?

A business owner’s policy combines general liability insurance and commercial property insurance in one policy, and is usually less expensive than buying the coverages separately. It’s often purchased by small business owners and startups to save money on their liability insurance.

A CPP is typically purchased by larger businesses with higher risks, including small or midsize businesses with several employees. A commercial package policy allows you to bundle multiple liability policies together, with more flexibility in terms of the risks covered and their coverage limits.

It also allows you to add endorsements, also known as riders, to increase or modify the types of coverage you have and tailor them to your specific needs.

Learn more about the difference between a commercial package policy and a business owner's policy

How do you get proof of insurance?

You can buy insurance through our online application. Our coverage forms take just a few minutes to complete. We’ll give you multiple quotes from top U.S. insurance carriers so you can compare options and find the right policy.

You can also speak with a licensed Insureon agent if you need help. It typically takes from 24 to 48 hours to complete the process and receive a certificate of insurance from the insurance company, which serves as proof of insurance.

Updated: October 10, 2023
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