A commercial package insurance policy, or CPP, allows a business to take a flexible approach to obtaining insurance coverage, and may allow the business to pay out a lower amount of premiums than it would had it purchased a separate policy for each risk. Clients can package coverage for more than one peril, such as commercial property, commercial crime, commercial and general liability.
Insurance companies typically write commercial package policies for small or mid-sized businesses. These types of businesses may have smaller liability needs because they do not operate large facilities, or because they only require additional insurance protection for small risks. For example, a light manufacturing company or car wash facility is less likely to require the same amount of coverage that a real estate developer requires.
Commercial package policies afford companies a high degree of customization, and may combine two or more types of coverage into a single policy. In addition to property and general liability, this type of policy may also provide coverage for automobile, inland marine, crime, or other risks. The policy premium depends on the risks that are being covered, as well as the number of coverages that are being combined.