A Guide to Understanding Commercial Package Policy

​Commercial Package Policy (CPP) gives a flexible approach as an insurance policy that combines coverage for multiple risks. CPP may also allow any business to pay out premiums at a lower amount rather than purchasing separate policies per risk.

How It Works
Insurance companies would typically recommend commercial package policies to small or medium-sized businesses. These types of businesses only have smaller liability needs because they only operate in smaller facilities. They are also exposed to lesser risks compared to large companies.

Each plan is accustomed to specific property and liability exposure. Its coverage options include general liability and property coverage and add business auto policies and crime protection.

Difference between Commercial Package and Business Owner Policies
Business Owners Policies are for small businesses without any specialized risks that offer the essential property and liability coverage small business owners need. The policy also consists of business income coverage and is included regardless of whether the customer wants it or not.

Suppose the company is progressively growing in size and complexity. In that case, the Commercial Package Policy is a better choice for the consumer and is flexible enough to be customized for the specific needs of the business.

Limitations
It is important that a business understands the potential risks it might face. Before purchasing Commercial Package Policies, one must consider these risks since it only covers certain events and no longer covers those that are not included.

The insurances below are only purchased separately but can still be discussed with the insurer. Commercial Package Policies do not include:

• Directors and Officers (D&O) Liability
• Workers Compensation
• Health and Disability
• Life Insurance

Directors and Officers insurance is only necessary for non-profit organizations, and Worker’s Compensation is required by law; therefore, it must be purchased separately. Life insurance and Health and Disability policies are also separate items with different policy choices.

Conclusion
Commercial Package Policies enable the business owner to purchase a bundle of various coverage types in a single policy. It is available for a wide range of businesses and can be more attentive to the specific needs and is suitable for a growing business.

At Desmond Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (859) 491-5100. Get your free quote today by CLICKING HERE.