A more significant benefit is the savings that package policies provide. Insurance providers will usually offer discounts -- and frequently big discounts -- for purchasing several insurance policies together. Depending on how much insurance a business needs, combining policies could lead to savings of hundreds or thousands of dollars.
What Types of Policies Can a CPP Contain?
A CPP is very flexible and can contain many different types of individual policies. It may include common coverages that many businesses need, such as general liability insurance, commercial property insurance, and business interruption insurance, as well as more specialized protections. Some other coverages that a business may be able to get through a CPP include:
- Commercial Auto Insurance, which is like personal auto insurance but adapted for businesses
- Employment Practices Liability, which can provide protection from employment-related lawsuits and claims
- Pollution Liability Insurance, which may provide coverage for chemical spills that contaminate soil or water
- Supply Chain Risk Insurance, which might provide supplemental income if a business loses revenue due to an interruption in its supply chain
- Inland Marine Insurance, which can often be used to insure equipment while it’s being transported
How Are Commercial Package Policies Different from Business Owners Policies?
While both commercial package policies and business owners policies are package policies that combine individual commercial insurance policies, they differ in a significant way.
Business owners policies generally only provide basic insurance coverages that most businesses need. For example, a business owners policy might only include general liability insurance, commercial property insurance, and business interruption insurance.
Commercial package policies can generally include these foundational coverages, as well as lots more. The ones listed above are just a sampling of the many individual policies that might be part of a commercial package policy.
Because commercial package policies offer more coverage options, they’re usually used by businesses that have greater or more specialized insurance needs. Businesses in Massachusetts that are exposed to particular risks by the nature of their work and those that are too big to qualify as small businesses often get commercial package policies. Some examples of these businesses might include a:
- Pool service company in Springfield, MA, which may need pollution coverage for the chemicals it uses
- Contractor in Worcester, MA, which may need inland marine coverage to protect its equipment while the equipment’s being transported
- Multi-site distributor with locations in Salem, MA and Plymouth, MA, which might need several policies for its various sites
- Large company based in Boston, MA that has hundreds of employees, which may be too big to qualify for a business owners policy
How Can Businesses in Massachusetts Get a CPP?
Business owners who want help finding a commercial package policy for their business should contact an independent insurance agent who’s licensed in Massachusetts who specializes in commercial insurance. Such an agent will be able to assist with identifying a business’ coverage needs and finding CPP coverage that meets those needs.
