On a daily basis, Massachusetts businesses are exposed to a variety of potential perils. In order to properly protect themselves from the different risks they face, businesses frequently need multiple insurance policies. A commercial package policy (CPP) makes it easy for businesses to get several insurance policies by combining them into one package policy.
A commercial package policy provides a convenient way to combine several individual policies into a single package policy. The included policies typically have to be commercial policies (and not personal policies), but a business can choose from many different commercial policies to create a customized package policy that’s specifically suited to the business’ needs.
Combining several policies into a package policy has a couple of benefits. A minor one is that premium payments are easier to manage, as businesses only need to worry about a single bill for the entire package policy.
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.
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:
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:
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.