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Do You Need a Commercial Package Policy?
A Commercial Package Policy ("CPP") is a customized package of two or more coverage forms. The most common coverage forms include commercial property, commercial general liability, inland marine, crime, equipment breakdown, and commercial auto.
A CPP differs from a Business Owners' Policy (BOP). A BOP is also a "package" of coverages, but a BOP automatically includes various standard coverages, such as general liability, property, business income, money and securities, valuable papers, accounts receivable, and employee dishonesty.
A Commercial Package policy provides only the coverages selected by the policyholder. A CPP can consist of only general liability and building and/or contents property coverage, or can also include several other coverage forms.
At CL Butcher Insurance Agency, we know that all coverage forms on a Commercial Package policy must be selected and tailored to the particular business. Please contact us for more information!
What Is Covered?
A CPP covers various property and/or liability exposures, depending on which coverage forms you select. Our Licensed agents will be able to help you decide what you need.
- The property portion of the policy would covers buildings, personal property, signs, property off premises, valuable papers, newly acquired properties, and personal property of others. Some of the coverages are subject to limits that may or may not be increased for an additional premium.
- There are separate coverage forms available for business income and extra expense, equipment breakdown, accounts receivable, crime, and others.
- Liability insurance covers the business if it is sued for something the business did or failed to do that caused injury or property damage to someone else. Liability insurance covers damages and settlements stemming from a lawsuit, up to the policy limits. Many liability policies also cover attorneys' fees and other costs associated with defending against a lawsuit.
What's Not Covered?
- Workers' Compensation is generally not included as a part of a Commercial Package Policy
- Health, life and disability insurance
- Professional Liability
What Affects the Cost of the Policy?
The premium is based on a variety of factors, depending on the types of coverage that you need covered on the package. For property insurance, the age, construction, and value of the building will greatly impact the premium. For liability coverage, the inherent risk of the insured’s operations and products will affect the premium.
Contact Us for additional information about a Commercial Package Policy.
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