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.
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.
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.
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:
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.
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.
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.
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.
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:
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.
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.
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:
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.
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