A commercial package policy (CCP) can include many different types of coverages, such as property insurance, liability, owned auto, crime, as well as inland marine and professional liability. By packaging these coverages you allow yourself greater flexibility to create a bundled insurance package specifically for the needs of your organization.
You can go with a standard blend of coverages that include general liability and business property insurance, or go with a richer combination of policies, for example, business auto, equipment breakdown, inland marine, business income, and product liability insurance, which enables you to have the exact coverage you desire in one convenient package.
As with most businesses, as your company grows you may find your insurance needs will change and become more complex. Having a CPP is an excellent way to customize your business insurance coverage in a much more coordinated and affordable way.
A CPP provides vast benefits
The benefits of a CCP to your company, from a financial perspective, is that you save money by bundling several policies as opposed to purchasing them separately and you only have to deal with one agent. This added convenience makes it easier when you have to file a claim. It’s 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 pollution liability, employment practices liability, and other coverages that may be necessary for you to have in place, but many of which are not available under a CPP.
This is why you need to research the different types of insurance that is available, and discuss with an agent exactly which policies are needed to fully protect your company. Balancing your coverage by purchasing policies specific to your business needs is crucial to maintaining the protection you desire. This becomes increasingly significant when basic covered perils and territorial limits warrant expansion. While purchasing a commercial package policy is a very useful solution, sound valuation is also crucial in order to get the most out of your purchases.