A commercial package policy (CPP) is a business insurance policy that bundles multiple types of coverage into a single contract. Instead of buying separate policies for each risk, a business can combine several coverages under one package.
It is one of the most flexible forms of commercial insurance available.
What does a commercial package policy cover?
A CPP is built around two required components: commercial property insurance and commercial general liability. From there, businesses can add coverages based on their specific needs.
Common coverages included in a CPP:
Commercial property insurance
Commercial general liability
Business interruption coverage
Commercial auto insurance
Crime and employee dishonesty coverage
Cyber liability
Coverage type | What it protects |
Commercial property | Buildings, equipment, and inventory |
General liability | Third-party bodily injury and property damage claims |
Business interruption | Lost income if operations are disrupted by a covered event |
Commercial auto | Company-owned vehicles and driver liability |
Cyber liability | Data breaches and cyberattacks |
Who needs a commercial package policy?
Mid-size to large businesses with multiple and complex risks are the primary candidates. A CPP is especially well-suited for businesses that need more flexibility than a standard prepackaged policy offers.
Industries that commonly use CPPs include manufacturing, construction, wholesale distribution, and any business with significant property assets or specialized liability exposure.
What is the difference between a CPP and a BOP?
A Business Owner's Policy (BOP) is a prepackaged policy designed for small businesses. It bundles general liability and commercial property at a fixed structure. A CPP is fully customizable and not prepackaged.
Key differences:
Feature | BOP | CPP |
Structure | Pre-set package | Fully customizable |
Best for | Small businesses | Mid-size to large businesses |
Coverage options | Limited add-ons | Wide range of coverages |
Flexibility | Low | High |
If a business has outgrown its BOP or has specialized risks, a CPP is usually the better fit.
How much does a commercial package policy cost?
Costs vary widely depending on industry, coverage types, revenue, number of employees, and claims history. On average, businesses pay around $90 per month, but complex operations can pay significantly more.
Because CPPs are customized, the best way to get an accurate figure is through a licensed commercial insurance broker who can quote based on the business's specific risk profile.
What is not covered by a commercial package policy?
A CPP does not automatically cover every risk. Common exclusions include professional liability (errors and omissions), workers' compensation, health insurance, and flood or earthquake damage unless specifically added.
Employers should review their CPP carefully and add endorsements or separate policies for any gaps.
Key Takeaways
Description | |
Definition | A customizable business insurance policy bundling multiple coverages into one contract |
Required components | Commercial property and general liability coverage |
Best for | Mid-size to large businesses with complex or specialized risk needs |
CPP vs. BOP | More flexible and customizable; BOPs are prepackaged for small businesses |
Common exclusions | Professional liability, workers' comp, flood, and earthquake unless added separately |
Frequently Asked Questions
Can a small business get a commercial package policy?
Yes, but it may be more than they need. Most small businesses are better served by a BOP, which is simpler and more cost-effective. A CPP makes more sense as risk complexity grows.
Is workers' compensation included in a CPP?
No. Workers' compensation is a separate policy and is required by law in most states. It is not part of a commercial package policy.
Can coverages be added or removed from a CPP mid-term?
In most cases, yes. One of the advantages of a CPP is flexibility. Businesses can work with their insurer to adjust coverages as their operations change.
Does a CPP replace all other business insurance?
No. A CPP covers many risks but not all. Professional liability, cyber liability (if not added), and health insurance are typically purchased separately.
