How Commercial Package Policy Differs From Business Owners Policy

​A commercial package policy (CPP) is for businesses that want to have a flexible approach to getting insurance coverage. It is designed to allow enterprises to pay out lower premiums than paying for another set of policies for a different type of risk.

Differences of Commercial Package Policy (CPP) and Business Owner Policies (BOP)
Both policies are a combination of multiple coverages and come as packages, but unlike business owner policy, commercial package policy is not offered pre-packed. Instead, it can be customized by the policy buyer. There are coverages in a business owner policy that the policyholder has no need for or does not want. The commercial package policy only includes coverages that the policyholder has selected.

Two main points differentiate the two business insurance policies: scale and customization. Large businesses best buy CPPs because you can customize the coverages to fit certain needs. At the same time, BOPs are pre-selected by the insurance agency, which is more suited for small to medium-sized enterprises.  

Another difference is how CPP offers flexibility to the holder to choose coverage, while BOP provides one simple policy outline.

Coverages that CPPs Contain Mostly
Commercial Package Policies can be given to any business but are more appropriate for large companies since they can cater to specific needs. Here is a list of what a commercial package policy usually covers, to begin with:

• Property Insurance
• General Liability Insurance
• Business Income Insurance
• Employment Practices Liability
• Pollution Liability
• Business Crime Insurance
• Electronic Data Processing Coverage
• Commercial Umbrella Liability

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Coverages that CPP Do Not Have
Although the policyholder can freely select the Commercial Package Policy, there are still certain risks that it cannot cover. Listed below are the following coverages the insurance policy will not have but can be added:

• Workers Compensation
• Health and Disability
• Life Insurance
• Directors and Officers Liability

When to Buy a Commercial Package Policy
There are many factors to consider if a Commercial Package Policy is the best option for a business, like the size and industry of the company. However, a business insurance policy is mandatory in some places to operate, but knowing which package to get is best left to insurance experts. It is highly suggested, though, for large businesses to get the Commercial Package Policy.  

Conclusion
In summary, in a Commercial Package Policy (CPP), it is easier to include and exclude coverages. Unlike in a Business Owners Policy, the policy has been simplified.

At Desmond Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we’re here to help you out. Learn more about our products and services by calling our agency at (859) 491-5100. You can also request a free quote by CLICKING HERE.