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A commercial package policy (CPP) is very similar to a personalized toolkit for businesses, offering different types of insurance coverage in just one package. It is just like a set of tools that meet all your needs, instead of purchasing them separately. With a commercial package policy, business owners can combine different types of insurance, such as property, liability, and crime, into one policy. This makes managing your policies easier and more affordable.
The flexibility allows each business to address its specific risks without paying for coverage that is not needed. Whether you run a small startup or a large corporation, a commercial package policy can be customized to meet the specific needs of your organization. By bundling the right coverages, the Commercial Package policy provides comprehensive protection for your business, helping you stay prepared for unexpected circumstances and changes.
Who Should Purchase a Commercial Package Policy?
Businesses that have huge risks of facing customer claims may benefit from this policy. These businesses include:
- A computer repair shop that repairs customer smartphones, laptops, and other smart devices every day
- A grocery store that is based in a very lousy neighborhood with huge traffic
- A barber shop that makes customers look good every day
Keep in mind that insurance companies may provide the same package with different names, like the customer protection package. However, these packages share the goal of bundled policies to provide broad coverage and save money for your business.
What Does a Commercial Package Policy Cover?
A commercial package policy (CPP) can be designed to meet the specific needs of any type of business. However, there are common coverage requirements that most businesses require. These typically include:
- General Liability Coverage: This coverage helps to protect your business from third-party lawsuits related to injuries.
- Property Liability Coverage: It covers damage caused to your office or building, including repairs and replacements due to fires and other covered hazards.
- Commercial Vehicle Coverage: This coverage protects your company’s vehicles and their drivers. It helps to cover legal and medical fees for bodily injuries and property damage in accidents.
- Crime Protection: Â This is designed to protect your business from losses due to crimes like fraud, embezzlement, robbery, and theft.
Extra common coverages that businesses often bundle with a CPP include:
- Cyber Liability
- Product Recall
Specific coverages for specific industries might also include:
- Boiler and Machinery
- Inland Marine
Although the commercial package policy can cover various ranges of risks, it’s important to remember that it isn’t all-inclusive. Each policy should be designed to ensure that your business is fully protected, depending on its unique needs.
What Does it Not Cover?
Just like every policy, this policy does not cover all business scenarios. Below are some of the events that may not be included in the package:
- Workers’ compensation
- Intentional actions that are illegal
- Professional liability
- Negligence
- Flooding
Many business owners who want a commercial package also consider another bundle referred to as the business owner policy.
How Much Does a Commercial Package Policy Cost?
Your cost for a CPP is based on different factors, such as:
- Amount of Coverage
- business location
- Business property value
- Business and industry operations
- Business Income
- Number of employees.
Keep in mind that cost varies from one insurer to another. So, ensure that you get multiple quotes from various insurers or agents before choosing the package policy for your business.
Business Owner Policy vs. Commercial Package Policy
Commercial package policies and business owner policies are both designed for businesses, bundling important coverages. However, they are different in two key aspects. And that is scale and customization.
Business owner policies are usually for small to medium-sized businesses with lower risk levels, offering predetermined packages. Meanwhile, commercial package policies are mostly for large businesses that need more flexibility and face greater risks. These packages are customizable and allow businesses to select and adjust coverages based on what they want.
The beauty of a commercial package policy lies in how simple it is. Combining various coverages into one comprehensive plan, it streamlines the complexities that come with juggling multiple policies. Instead of having several documents and points of contact, businesses deal with just one insurance company and one policy. It’s a straightforward solution that simplifies the insurance process for many business individuals.