Commercial Package Policy Policy Information
Commercial Package Policy. As a business owner, you do your very best to ensure that everything is running smoothly.
You go the extra mile to make sure your customers' needs are met, you adhere to all protocols to provide a safe work environment for your employees, you adhere to all guidance for your particular industry, you remain current with the latest innovations and trends, and you strive to ensure that your commercial property and all the materials and supplies that are used to run your operations are safe and secure.
However, despite your best efforts, there is always a chance that something can go wrong.
No matter the industry or the size of a company, businesses face a laundry list of risks. Third-party liability claims, workplace injuries, acts of nature, theft, and vandalism are just some of the risks that business owners face. As the owner and operator of your establishment, you are responsible for anything that goes wrong and the costs that are related to any unforeseen incidents.
Fortunately, there's a way that you can protect yourself from the unexpected. How? By investing in a commercial package policy.
A commercial package policy helps protect businesses against lawsuits using custom bundled property & liability policies - with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked Commercial Package Policy insurance questions:
- How Much Does Commercial Package Policy Cost?
- What Types Of Coverage Can A Commercial Package Policy Provide?
- When Should I Consider A Commercial Package Policy?
- What Type Of Savings Do Commercial Package Policies Offer?
- What's The Difference Between A Commercial Package Policy & A Business Owners Policy?
How Much Does Commercial Package Policy Cost?
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.
What Types Of Coverage Can A Commercial Package Policy Provide?
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.
When Should I Consider 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.
What Type Of Savings Do Commercial Package Policies Offer?
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.
What's The Difference Between A Commercial Package Policy & A Business Owners 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.
Commercial Package Policy - The Bottom Line
As a business owner, you want to ensure that your business, employees, the people you interact with (clients and the public at large), stakeholders, and of course, yourself, are all protected from the numerous risks you face.
An easy, more cost-effective way to do just that is buy investing in a commercial package policy that is customized to meet the unique needs of your operation.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Crime
- Commercial Package Policy
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Ocean Marine
- Professional Liability
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.