Buy Commercial Package Policy

A commercial package policy is a type of insurance policy that combines multiple types of coverage into one package for businesses. These policies typically include property insurance, liability insurance, and crime insurance. The package can also include additional coverage options such as business interruption insurance, equipment breakdown insurance, and cyber liability insurance.

The goal of a commercial package policy is to provide comprehensive coverage for a business in one convenient package, rather than having to purchase multiple policies from different insurance companies.

The average price of a standard $1,000,000 Commercial Package Policy for small businesses from $47 to $69 per month based on location, size, industry, experience and more.

The commercial package policy, as mentioned, can be customized to meet the unique needs of your company. These policies can feature a variety of individual coverage options, examples of which include:

• Commercial General Liability - This type of coverage protects business owners from third-party liability claims. For example, if a client slips and falls on your commercial property and files a lawsuit, this policy would cover the cost of any medical care that you may be responsible for, as well as legal defense fees and settlements that you may be required to pay.
• Commercial Property - This coverage protects the physical structure of a commercial space, as well as the contents within it and some of its external structures, from acts of nature, such as fires or pipe bursts, as well as theft and acts of vandalism. For instance, if a tree were to collapse, knock out a sign, and fall on your roof, commercial property insurance would cover the damages.
• Commercial Auto - If you have company vehicles, this policy would cover any accidents that may occur while they are being used for work-related purposes; if an employee were to rear-end someone else while driving a work truck, this policy would cover the damages to the third-party's vehicle, for example.
• Business Interruption - If your business were forced to close down - after a fire, for instance - this policy would compensate lost revenue until you can reopen.
• Inland Marine - For businesses that transport tools and equipment from location to location, inland marine insurance would cover that property while it is in transit or at another site.
• Equipment Breakdown - This policy provides coverages for losses that are related to the mechanical or electrical breakdown of all types of equipment; computers, copy machines, electrical systems, etc. It covers the cost of repairing or replacing the covered equipment, as well as the damages that the breakdown may cause.

These are just some examples of the coverages that a commercial package policy could provide. Do note, however, that while various types of coverage can be provided under a single CPP, some standard coverages typically aren't incorporated into a CPP, such as workers' compensation, disability, and health insurance.

All commercial coverage parts can be included under a package policy. Any risk or operation that can be insured using any of the coverage parts can be written on the package policy. There is only one exception. If a risk is eligible to be included in a homeowners policy, it cannot be included in a commercial package policy.

A commercial package policy offers some distinct advantages that would be beneficial to many business owners. Many of your coverage needs (except Workers Compensation) can be combined into one policy.

Most notably, while the coverages that can be included in a CPP can be purchases as single, stand-alone policies, incorporating those coverages into a single policy makes it a lot easier to manage premiums.

A CPP offers a wide range of insurance options along with package discounts. Therefore, a CPP not only represents an opportunity to customize protection for your operation, it also provides a chance to save on the cost of that protection.

For instance, instead of paying premiums for several different policies at different times of the month, with a CPP, you would only have to pay a single premium once a month.

Commercial package policies can also help to cut costs, as a lot of insurance companies offer discounts when policyholders bundle several coverages together.

The CPP is used most often in larger businesses or smaller and medium-sized businesses that are unique or have special insurance needs.

There is a cost savings to insurance companies when multiple coverages are issued as one policy instead of many. Recognizing this, a credit called a package modification is multiplied times the total premium on a package.

Not all parts of the package or all packages are eligible for the credit. The following must be in place for a policy to be eligible for the package modification (and save on premium):

• The property coverage part must be included, and the building and/or business personal property coverage must be written on at least an 80% coinsurance basis.
• A coverage part with bodily injury and property damage coverage must be included, and the bodily injury and property coverage must be for locations that are covered under the property coverage part of the policy.

If a policy is eligible for a package modification factor, a factor is applied to all coverage parts, but the factor may vary by coverage part. Certain special property rating plans, earthquake coverages, personal liability, some farm nonbusiness-related exposures, and certain crime exposures do not qualify for further modification.

It is important to remember that a commercial package policy is still a package policy even when no package modification is granted. There is no additional coverage with a package policy; it is simply a convenient method of combining many coverage parts into one policy.

While they may seem similar, a commercial package policy and a business owner policy (BOP) are not the same.

There are two different approaches to packaging commercial lines coverages. One could be described as "a la carte" while the other is a "luncheon special."

In the "a la carte" package, called the commercial package policy (CPP), the applicant can choose from a number of different coverages to build a customized product.

In the "luncheon special," called the businessowners policy (BOP), the applicant must accept certain pre-selected coverages and then choose from a limited menu of options.

As the name suggests, a commercial package policy (often simply referred to as a "CPP") provides several different individual types of commercial coverage under a single policy.

The individual policies, of course, are all specifically designed for businesses and those policies can be modified to meet the specific needs of a business.

Though a BOP does combine several different important coverages, typically it features some standard coverages that may not be useful to the policyholder or may not provide the coverage that a business owner specifically needs.

For instance, a BOP may include business income coverage, even if the policyholder does not want or need this type of coverage, or if a company requires inland marine insurance, a BOP usually doesn't offer this type of specialized coverage.

CPPs, on the other hand, only offer coverages that the business owner selects. In other words, a CPP can be customized while a BOP usually cannot.

A Commercial Package Policy (CPP) is a type of insurance policy that provides coverage for multiple types of commercial risks, including property damage, liability, and business interruption. Here are a few examples of CPP claims and how the policy can help pay for a lawsuit:

• Property Damage: A small business owner has a CPP that includes coverage for property damage. A fire breaks out in the building, damaging the owner's property, equipment, and inventory. The CPP will help pay for the cost of repairing or replacing the damaged property.
• Liability: A customer slips and falls on a wet floor in a store owned by a small business owner. The customer files a lawsuit claiming the business owner is responsible for the injury. The CPP includes liability coverage, which can help pay for legal expenses and settlement costs.
• Business Interruption: A small business owner has a CPP that includes coverage for business interruption. A major storm causes damage to the building, making it impossible for the business to operate for several weeks. The CPP will help pay for the loss of income during the period of interruption.
• Product Liability: A manufacturer produces a defective product that causes injury to a customer. The customer files a lawsuit against the manufacturer. The CPP includes product liability coverage, which can help pay for legal expenses and settlement costs.
• Cyber Liability: A small business owner's computer system is hacked, and customer data is stolen. The customers file a lawsuit against the business owner for negligence in protecting their personal information. The CPP includes cyber liability coverage, which can help pay for legal expenses and settlement costs related to the data breach.

In addition to these examples, a CPP can also provide coverage for other risks such as equipment breakdown, crime, and inland marine. The policy can be customized to meet the specific needs of a business, and it can help protect against financial losses that could otherwise be devastating.

When purchasing a CPP, it is important for business owners to work with a knowledgeable insurance agent or broker to ensure that they are getting the right coverage for their needs. The agent or broker can help assess the risks faced by the business and recommend the appropriate coverage limits and policy options.

Overall, a CPP is a valuable tool for protecting businesses from a variety of risks, and it can help provide peace of mind to business owners knowing that they are covered in the event of a loss.