What does a commercial package policy include?
A commercial package policy (CPP) is a type of insurance policy that combines multiple coverages under a single plan. This comprehensive policy is designed to meet the individual needs of businesses of all sizes. Here are some of the key coverages included in a commercial package policy:
1. Property Insurance: This coverage protects a company’s physical assets, such as buildings, equipment, and inventory, from damage or loss due to covered perils like fire, theft, and vandalism.
2. General Liability Insurance: General liability insurance provides protection in case a business is held liable for bodily injury or property damage to third parties.
3. Business Interruption Insurance: This coverage helps businesses recover lost income and pay ongoing expenses when a covered event, such as a natural disaster, forces them to temporarily shut down.
4. Commercial Auto Insurance: Commercial auto insurance provides coverage for vehicles used by a business, including cars, trucks, and vans, in case of accidents or other damage.
5. Workers’ Compensation Insurance: Workers’ compensation insurance is required in most states and provides benefits to employees who are injured or become ill on the job.
6. Professional Liability Insurance: Also known as errors and omissions insurance, this coverage protects businesses that provide professional services from claims of errors, negligence, or inadequate work.
7. Cyber Liability Insurance: Cyber liability insurance helps businesses protect against the financial losses associated with data breaches, hacking, or other cyber crimes.
8. Crime Insurance: Crime insurance provides coverage for losses due to criminal acts like theft, fraud, or forgery committed by employees or third parties.
9. Equipment Breakdown Insurance: This coverage helps businesses cover the cost of repairs or replacements for equipment that has broken down due to mechanical or electrical issues.
10. Umbrella Insurance: Umbrella insurance provides additional liability coverage beyond the limits of other policies, offering extra protection against large and unexpected claims.
11. Employment Practices Liability Insurance: This coverage protects businesses from claims related to employment practices, such as discrimination, wrongful termination, or sexual harassment.
12. Directors and Officers Insurance: Directors and officers insurance provides coverage for the personal assets of company executives in case they are sued for decisions made in their roles.
By bundling these and other coverages together, a commercial package policy offers businesses a convenient and cost-effective way to obtain comprehensive insurance protection tailored to their specific needs. It allows businesses to customize their coverage to address their unique risks and exposures, providing peace of mind and financial security in the event of unforeseen events.