There is a widening number of risks that pose a threat to business owners today. From online accounting to physical exposures to a company’s building, there needs to be a solid commercial package policy in place, or at least considered, to protect against gaining threats.
With a rise in cyber threats over the past decade and easier access to digital information reported by the Department of Homeland Security, investing in a CPP is crucial. But before a business looks into adding this coverage it’s good to know what can be added, as these packages are personalized to fit each business.
Here are some key insurance policies to consider when adding a CPP.
What CPP’s Contain
Every commercial package policy comes standard with a few elements.
- Common Policy Declarations
These specify the insured, the property covered, and the type of coverage provided. Declarations contain the name and address of the policyholder, other boilerplate information related to its basic contact information, and information regarding premiums.
- Common Policy Conditions
These outline the rights and obligations of both the insurer and the named insured. Policy changes, cancellations, premiums, and examinations of records are some of the types of coverages included in a CPP.
Key Add-Ons For CPP
There are multiple options to choose from when personalizing a CPP to fit a business’s needs. Depending on the industry, price, size of staff, building condition, and the like, there are many coverages to consider when adding on. Each additional piece of coverage comes with its own conditions, declarations, covered causes-of-loss, and endorsements. So it’s important to go over exactly what is needed when developing a well thought-out plan.
Probably the most vital elements in a CPP include a combination of the following coverages:
- Commercial property coverage
- Commercial general liability
- Commercial crime coverage
- Commercial auto coverage
- Professional liability coverage
- Farm coverage
- Equipment breakdown insurance
- Commercial inland marine coverage
- Employment practices liability coverage
Are CPP’s That Important?
The short answer is obviously yes. A CPP is designed specifically for businesses and commercial property owners to provide customization. This kind of flexibility may not be offered in a standard business owner’s policy, or BOP. A CPP is beneficial for businesses of all sizes and industries, especially for commercial clients that have higher-than-average risk.
By combining multiple policies, a policyholder is set up for extended coverage and/or lower premiums compared to buying policies individually. Consolidating coverage will result in a smaller combined payment, which is great for the bottom line.
About Walker & Associates
If you’re in the market for a new insurance partner, do your homework to ensure a lucrative venture and positive relationship. Contact us online at Walker & Associates Insurance or by phone at (800) 213-7126 for your insurance needs. We can explain your coverage options and how much coverage will cost.