A commercial package policy abbreviated as CPP is an insurance policy that combines coverage for multiple hazards, such as liability and property risk. This coverage policy provides businesses to take a flexible approach to obtain insurance coverage policies. The advantage of CPP is that it may allow the businesses to pay out a lower amount of premiums than if they purchased a separate policy for each risk. It varies from the business owner policy (BOP) because the CCP is customizable and flexible, while BOP allows a set of policies that cannot be changed.
How does a Commercial Package Insurance Policy work?
Commercial package policies allow for a high level of customization and may combine two or more coverages into a single policy. While each plan is specific, the average CPP covers various property and liability vulnerabilities. Mostly CPP coverage options involve general liability and property coverage. Crime protection policies may also become a part of CPP insurance that includes coverage for embezzlement, forgery, check, or money tampering and credit card fraud.
Inland marine coverages are also common under a commercial package policy, which provides on-the-ground protection for things in transportation. Additional coverage policies can be added at extra cost, letting each business to precisely cover its unique set of risks. Commercial package policy doesn’t include certain coverages like workers’ compensation or directors-and-officers insurance policies. Workers’ compensation insurance is compulsory for all businesses and is required by law and must be purchased as a separate insurance policy. Directors-and-officers policies are also essential for all kinds of organizations.