Commercial Package Policy

A commercial package policy (CPP), unlike a BOP, 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

There are a couple of distinct advantages to purchasing insurance as a commercial package versus piecemealing separate policies together. The most significant advantage is the 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 insureds 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.

1. Common Policy Declarations

• Defines the insured for each policy as well as the types of coverage provided, policy period, address, premium and rates, as well as information about the business.

2. 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.

3. CPP Coverages on Policy

• This part of the agreement indicates each of the specific lines of coverage included in the CPP 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 periods guaranteed to be the same, but the policy language is better suited to fill any potential gaps in coverage should there be any discrepancies in regard to a claim or potential liability.

Commercial Package Policies are Never the Same

No two commercial package policies 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 packaged 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; we’ve streamlined the underwriting process. Additionally, we have access to more insurance companies offering quotes on package policies 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 three out of five business owners not written using a BOP, are written under some form of a commercial package. The primary reasons they go with a CPP are a) simplicity, b) better pricing and c) fewer gaps in coverage. Companies who have multiple insurance policies 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 Definition

A commercial package policy is nothing more than a policy that covers more than one 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.