The Commercial Package Policy (CCP) includes almost any type of coverage offered, from property and liability to auto, crime, inland marine and professional liability. Packaging these coverages allows you greater flexibility to create a policy specifically for the needs of your organization, and can range from a simple blend of general liability and business property insurance to a rich combination of policies, such as business auto, equipment breakdown, crime, inland marine, business income with extra expense, and some liability insurance, enabling you to have many of your coverages in one convenient package.
As your business grows, you may find that your insurance needs will become more and more complex. Having a CPP is often an excellent way to customize your business insurance coverage in a more coordinated and highly affordable way.
From simple to complex
The benefits of a CCP to your company are vast and can make more sense, from a financial perspective, than most basic coverage, but you should note some of the differences:
• Limits of insurance under basic coverage for unscheduled personal property are reserved for general property and by separate treatment of the specified property
• Perils and exposures that are not included in the basic coverage generally are covered in a specialized form
• Certain kinds of personal property, for which specialized coverage is available, are excluded from coverage under commercial package forms for general personal property
• Although various insurers provide for increasing the limit of insurance for such property, the scope of perils covered is normally expanded by specialty insurance and scheduling since you may be subject to sub-limits that may be insufficient
Agents and brokers should familiarize themselves, for example, with the numerous forms of specialized insurance of an inland marine nature, adaptable to the needs of many commercial clients and prospects.
It is important to understand that insurance under a CCP can be structured with a great deal of specificity in coverage, deductibles and payout limits. It can also be enhanced by stand-alone liability policies, such as employment practices liability, pollution liability and other coverages that may be needed but not available under a CPP.
Balancing your coverage by purchasing those policies specific to your business needs is crucial to maintaining the protection your company needs. This is especially significant when basically covered perils and territorial limits warrant expansion. Commercial package policies are a useful solution, but sound valuation is crucial in order to get the most out of your coverage.