Commercial Package (C.P.P.) Policy

Commercial Package Policy (C.P.P.)


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A Commercial Package Policy (C.P.P.) is an insurance policy that combines coverage for multiple perils, such as liability and property risk.  A commercial package policy, or C.P.P., enables a business to take a flexible approach to obtaining insurance coverage, and may even allow the business to pay a lower premium than it would had it purchased a separate policy for each risk.

Insurance companies typically write commercial package policies for small or mid-sized businesses.  These types of businesses may have smaller liability needs because they do not have larger operations and locations, or because they only require additional insurance protection for small risks.  As an example, a manufacturer company or conveneince store is less likely to require the same amount of coverage that a real estate development firm might require.

Commercial package policies afford a company a much higher degree of tailoring, and may combine multiple coverages into a single policy.  In addition to property and liability coverages, this type of policy may also provide coverage for automobile, inland marine, crime, or some other risks.  The premium would depend on the risks that are being covered, as well as the number and type coverages being combined.

This Commercial Package Policy (C.P.P.) differs from a Business Owner's Package (B.O.P.).  While a B.O.P. also combines multiple coverages, it often includes a variety of standard coverages that may not be of interest to the policyholder.  As an example, the policy may include Business Loss of Income coverage whether or not the policyholder actually wants it.  Commercial Package Policies (C.P.P.) only include coverage that is actually selected by the policyholder themselves in close consultation with their broker.

Before purchasing a Commercial Package Policy (C.P.P.) its important that a small or medium sized business owner understand the risks that they face.  This type of policy only covers specific risks, so if the insured party does not include insurance against a particular event then it will find itself without the appropriate coverage for certain events.  Also, this type of policy doesn’t cover workers’ compensation, life, health, or disability, nor could it.  These are entirely different types of coverage to be discuss with your broker seperately.

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