What does a commercial package policy (CPP) consist of?

A Commercial Package Policy, also commonly known under its abbreviation CPP, is designed to provide protection for just about any type of commercial risk out there. Under a CPP, a business owner may combine different coverages and package them so that they cover the specific risks each business owner is exposed to.

Commercial Package Policy Components

Every commercial package policy contains the following elements:

• Common Policy Declarations specify the insured, the property covered and the type of coverage that the CPP in question provides. It contains the name and address of the policyholder, the policy period, information about the business, the coverage and the premiums.
• Common Policy conditions outline the rights and obligations of both the insurer and the named insured. The Common conditions, such as Policy Changes, Cancellation, Premiums, Transfer of Rights and Duties, and Examination of Books and Records, apply to all the coverages of a commercial package policy.
• CPP Coverages are probably the most important element of a commercial package policy. This is the component which the flexibility of a CPP lies in, since is allows for any combination of the following coverages:
  • Commercial Property coverage;
  • Commercial General Liability (CGL) coverage;
  • Commercial Crime coverage;
  • Commercial Auto coverage;
  • Boiler and Machinery coverage, also known as Equipment Breakdown insurance;
  • Professional Liability coverage;
  • Commercial Inland Marine coverage;
  • Farm coverage;
  • Employment Practices Liability coverage.

All the above-mentioned coverage forms come with their own conditions, declarations, covered causes-of-loss and endorsements.

Commercial Package Policy holders can also add certain interline riders to their existing coverages. Some of these endorsements are optional, while others are obligatory.

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