Businesses of all sizes face various risks, from property damage to liability claims. While standalone policies can provide some protection, many businesses find it more beneficial to combine multiple coverages into a single policy. This is where the commercial package policy insurance (CPP) steps in.

What Is a Commercial Package Policy?

A commercial package policy (CPP) is a type of insurance that allows businesses to bundle multiple coverages into a single, comprehensive policy. Unlike standalone policies that cover only one kind of risk, a CPP insurance policy offers flexibility by combining several essential coverages, such as general liability and property insurance. This makes it easier for businesses to manage their insurance needs and often results in cost savings.

Commercial package insurance typically suits medium- to large-sized businesses with more complex risks or who require a tailored approach. The modular nature of this policy means businesses can adapt as they grow, adding or modifying coverages as needed.

What Commercial Package Policies Cover

By bundling multiple types of insurance, a CPP policy provides comprehensive protection tailored to specific business needs. Here are common coverages:

General Liability Insurance

This coverage protects against claims of bodily injury and property damage caused by the business's operations, products or services. It covers medical expenses, legal defense costs and settlements or judgments resulting from covered incidents.

Commercial Property Insurance

This CPP insurance coverage protects the business’s physical assets, including buildings, equipment, inventory and furnishings, from risks like fire, theft, vandalism and certain weather events. If your property is damaged or destroyed, the insurance covers the cost of repairs or replacement.

Business Interruption Insurance

If an insured event forces a temporary business closure, this coverage compensates for lost income and ongoing expenses. It often covers expenses such as rent, payroll and utilities.

Inland Marine Insurance

For businesses that transport equipment, goods or tools offsite, inland marine insurance covers potential damages or losses during transit. This coverage offers protection for mobile or offsite assets. Businesses such as construction companies and contractors frequently rely on this protection.

Crime Insurance

This coverage protects against losses from theft, fraud or employee dishonesty, including forgery and computer fraud. Business assets, such as cash, inventory and securities, are safeguarded from criminal acts. A package insurance policy with crime insurance can be customized to match specific industry-related risks.

Commercial Package Policy Exclusions

A CPP doesn't cover all business risks. Here are some common exclusions:

  • Workers' compensation insurance: Commercial package insurance does not cover workplace injuries or illnesses affecting employees. Employers must purchase separate workers' compensation coverage to meet regulatory requirements and protect employees. This coverage provides medical benefits, wage replacement and other support to injured employees.
  • Professional liability insurance: Mistakes and negligence within professional services are not covered under a standard CPP policy. Businesses offering advice, consulting or professional services require separate professional liability insurance, also known as errors and omissions insurance.
  • Cyber liability insurance: CPP insurance does not automatically include coverage for cyberattacks, data breaches or IT-related incidents. Companies relying heavily on digital systems or sensitive data should consider cyber liability coverage.
  • Flood insurance: Flood damage typically falls outside the scope of standard CPP insurance policies. Businesses located in flood-prone areas must secure separate flood insurance coverage.
  • Health and disability insurance for employees: Coverage for employee health, medical costs or disability falls outside of a CPP. Employers must purchase dedicated group health plans or disability insurance separately.

Commercial Package Policy Benefits

Purchasing commercial package insurance brings many benefits to businesses, including:

  • Customizable coverage options: A CPP insurance policy allows businesses to tailor their insurance coverage based on unique risks and needs.
  • Cost efficiency: Bundling multiple coverages into one package policy insurance often results in lower overall premiums compared to purchasing individual policies.
  • Simplified policy management: Businesses benefit from managing a single commercial insurance package rather than dealing with multiple policies and providers.
  • Better coverage coordination: CPP insurance policies minimize coverage gaps by aligning terms and conditions across all coverages.
  • Scalability: A CPP can grow alongside a business, adapting coverage to new risks, operations and expansions. Businesses have the option to add or modify coverage based on their changing needs.

Commercial Package Policy vs. Business Owner’s Policy

business owners’ policy (BOP) is generally geared toward small to mid-sized businesses with more straightforward insurance needs. It combines general liability, commercial property and often business interruption insurance into one cost-effective package. However, BOPs offer less customization compared to CPP insurance policies.

Meanwhile, CPP insurance allows businesses to build a policy based on their unique risks, combining different types of insurance beyond the standard options. This flexibility suits larger companies or businesses with specialized risks.

Deciding between a commercial package policy versus BOP depends on a business’s size, industry and specific needs. For example, a small retail store with a single location, light inventory and a simple operational setup would benefit from a BOP. Meanwhile, a CCP will better serve a manufacturing company with multiple facilities, high-value equipment and specific liability exposures.

How to Obtain a Commercial Package Policy

To find the right commercial package policy, follow the steps below.

  1. 1

    Assess your business risks

    Identify specific risks and exposures your business faces. Consider property, liability and industry-related risks that could lead to financial losses.

  2. 2

    Consult with an insurance agent

    Work with an experienced insurance professional to review available commercial insurance package options. An agent provides guidance on coverage combinations that best suit your business.

  3. 3

    Determine coverage needs

    Based on your risk assessment, decide which coverages to include in your CPP insurance policy. Consider standard options like general liability, property and specialized coverages.

  4. 4

    Request and compare quotes

    Obtain quotes from top insurance providers for your desired commercial package policy. Compare the scope of coverage, premiums, terms and deductibles.

  5. 5

    Customize your policy

    Collaborate with the insurer to modify your CPP insurance policy for a tailored fit. Add or remove coverages based on your business’s changing needs.

  6. 6

    Finalize and implement the policy

    Once you’re satisfied with the policy terms, finalize and purchase the commercial package policy.

FAQ About Commercial Package Policies

What is a commercial package policy?

What is not included in a commercial package policy?

How is a commercial package policy different from a business owner's policy?

Can a commercial package policy include cyber liability coverage?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.