Every business owner understands the importance of adequate insurance to protect their investment against property damage and liability. Choosing the right policy is difficult, however. There is no “one size fits all” package that is right for every company. That’s why it is critical to understand the options available.
What Is a Commercial Package Policy?
CPP insurance is a policy that combines two or more business perils into one comprehensive package. The specific needs of each business are considered when designing the policy. A general business owner policy also combines several coverages, but it often includes items that may not be necessary for smaller businesses. The CPP policy is ideal for small and mid-sized businesses because these companies usually have much smaller risks and liability, making the policy more cost-effective.
CPP coverage can include two or more of the following issues:
- The building structures and contents
- Other properties located off-site
- Breakdown or damage to equipment
- Important data that was lost or stolen
- Interruptions in business operations
- General liability to cover the costs of litigation
CPP insurance doesn’t cover certain perils, such as fiduciary and professional liability and workers’ compensation.
Before you purchase a CPP, make sure you understand the risks your business faces so that you get the right coverage to protect your company.