What is a Commercial Package Policy (CPP)?
A commercial package policy is a type of insurance policy incorporating multiple coverages into one approach. This can include property insurance, liability insurance, business interruption insurance, and crime insurance. CPPs are often purchased by small and medium-sized businesses (SMBs) because they offer a more customizable and flexible approach to risk management.
Who Needs a Commercial Package Policy?
SMBs in a variety of industries can benefit from using a CPP. Some of the industries that most commonly use CPPs include:
- Professional services
What Does a Commercial Package Policy Cover?
The specific coverage included in a CPP will vary depending on the policyholder’s needs. However, some of the most common coverages include:
- Property insurance: This covers damage to or loss of business property, such as buildings, equipment, and inventory.
- Business interruption insurance: It is a type of coverage that gives a financial shield for your business in the event of an unforeseen event. If your business is forced to shut down due to a covered incident, such as a fire or natural disaster, this insurance can help cover lost income and expenses. It’s an excellent option to consider for protecting yourself and your business.
- Crime insurance covers losses from theft, burglary, and other crimes.
Benefits of a Commercial Package Policy
There are several benefits to using a CPP, including:
- Reduced premiums: CPPs often offer lower premiums than purchasing separate policies for each coverage.
- Convenience: CPPs combine multiple coverages into one policy, making it easier for businesses to manage their risk management needs.
- Flexibility: CPPs can be customized to meet the specific needs of a business.
How to Get a Commercial Package Policy
SMBs can get a CPP from an insurance agent or broker. The agent or broker will work with the business owner to assess risk management needs and develop a customized policy.
Here are some additional things to keep in mind about CPPs:
- CPPs are typically only available to businesses with good credit histories.
- CPPs may not be available in all states.
- CPPs are subject to underwriting guidelines, meaning not all companies will be eligible for coverage.