Commercial Package Policy (CPP)
A Commercial Package Policy — commonly called a CPP — is a flexible commercial insurance structure that allows multiple lines of coverage to be combined into a single policy using standardized coverage forms. Unlike a Business Owners Policy, which is a pre-packaged product with limited modification, a CPP allows for greater customization of each coverage component to meet the specific needs of a business that has outgrown standard BOP eligibility or requires coverage structures that a BOP cannot accommodate.
How a CPP Is Structured
A CPP is built from individual coverage parts that are selected based on the insured's specific exposures. Common coverage parts that can be included in a CPP include:
- Commercial property — covering buildings, business personal property, and related property exposures
- Commercial general liability — covering third-party bodily injury, property damage, and personal and advertising injury
- Commercial inland marine — covering mobile equipment, contractor's tools, accounts receivable, valuable papers, and similar exposures
- Commercial crime — covering employee theft, forgery, funds transfer fraud, and related crime exposures
- Equipment breakdown — covering mechanical and electrical equipment failure
- Commercial auto — in some structures, though auto is frequently placed as a monoline policy
CPP vs. BOP
The primary differences between a CPP and a BOP are flexibility and eligibility. A BOP is a standardized product designed for smaller, lower-risk businesses and offers limited customization. A CPP can be built to accommodate larger, more complex businesses and allows each coverage part to be tailored — including limits, deductibles, and coverage terms — in ways that a BOP does not permit. Businesses that have more than one location, carry significant property values, face unusual liability exposures, or operate in industries not eligible for BOP programs are often better served by a CPP structure.
Industry Considerations
A CPP is appropriate for a wide range of commercial operations — from mid-size manufacturers and distributors to real estate investors, hospitality businesses, and service companies with complex coverage needs. The right structure depends on the specific combination of property, liability, inland marine, crime, and other exposures a business carries, and on how those exposures interact. Etowah Insurance Group works with businesses to design CPP structures that address their full range of exposures efficiently and cost-effectively. A consultation is the right starting point for any business evaluating whether a CPP or another program structure is the best fit.
