Commercial Package Policy
A commercial package policy (CPP), unlike a BOP policy, can be written for literally any type of business regardless of the nature of their operation. A CPP is nothing more than a single policy written by a single insurance company that provides coverage for two or more lines of coverage.
Benefits of a CPP Policy
There are a couple of distinct advantages to purchasing insurance as a commercial package versus piecemealing separate policies together. The most significant advantage is price. Simply stated, the more lines of coverage an insurance company can quote, the better the rates are for coverage. Most insurance carriers will discount their premium rates in exchange for securing more lines of insurance with each insured. The rationale behind this is that insured’s are unlikely to sustain simultaneous claims from more than one line of coverage; therefore, the carrier has additional premium dollars which help offset claim costs on a single line of coverage.
Insurance companies are more willing to give premium credits and policy discounts when they write more lines of coverage for a business.
Another major advantage to getting a package insurance policy from one carrier has to do with policy language, and the ability to close potential gaps in coverage. Since every insurance company determines how their policy responds to claims, there are often major differences in the contractual language from one insurance company to the next. When an business owner purchases a package policy, the risk of these coverage gaps become minimal due to the way a package policy is written.
|There are 3 key parts of a commercial package policy.|
• Common Policy Declarations:
Defines the insured for each policy as well as the types of coverage provided, policy period, address, premium and rates, and information about the business.
• Common Policy Conditions:
Establishes the rights and obligations of both parties. Includes the common conditions for policy changes, premiums, cancellations, and duties as applied to all coverages under the commercial policy.
• CPP Coverages on Policy:
This part of the agreement indicates each of the specific lines of coverage included in the CPP policy along with any applicable conditions, declarations, endorsements, or special language.
The manner in which a commercial insurance package is written better allows for continuity of coverage between each line of the CPP. Not only are the policy period guaranteed to be the same, the policy language is better suited to filling any potential gaps in coverage should their be any discrepancies with regard to a claim or potential liability.
Commercial Package Policies are Never the Same
No two commercial package polices are the same. Every part of the CPP coverage including the insurance lines, policy limits, deductibles, and endorsements are purposefully added or rated as part of the policy. Quoting commercial packages takes a good deal of knowledge and experience so that each business owner is fully aware of what is and what is not covered under the policy.
Get Commercial Package Insurance Quotes
Traditionally, most commercial insurance packages were purchased from local insurance agencies who would inspect the operation and put a package quote together. Today, many savvy businesses are turning to the Internet to make sure they are getting the best CPP coverage for their business at the lowest rates available. Technology and online tools make it easier for companies to shop insurance coverage and for insurance carriers to research and underwrite individual businesses.
At General Liability Shop.com, all we do is commercial insurance. Our licensed Specialists undergo over 150 hours of commercial insurance training each year with our partner insurance companies. Our specialized focus on business insurance makes our agency faster than ever because we’ve streamlined the underwriting process. Additionally, we have access to more insurance companies offering quotes on package polices because we’re a national commercial agency.
Give us a call today at (800) 900-8657, or start your CPP quote online.
CPP Insurance Products
Nearly 3 out of 5 business owners not written using a BOP policy, are written under a some form of a commercial package. The primary reason they go with the a CPP is a) simplicity, b) better pricing, and c) less gaps in coverage. Companies who have multiple insurance polices outside of a package are often paying more money for insurance than similar business written under a CPP. Often times, we find that business owners were not offered a package policy because their insurance agency had limited markets for CPP quotes. If your business is not written as a BOP or CPP, we encourage you to find out why and to shop your business insurance coverage.
General liability insurance coverage is the foundation and starting point for purchasing a commercial insurance package for any type of business.
Learn more about General Liability Insurance Quotes.
CPP Policy Definition
A commercial package policy is nothing more than a policy that covers more than on insurance risk, or peril as its called in the insurance industry. When one insurance company quotes and binds coverage for general liability insurance and another line of coverage such as property or auto, it is called a commercial package policy. If two separate insurance companies write two separate policies for the same business, it is not considered a CPP because they are separate policies issued by separate insurance companies.