What is the primary purpose of a commercial package policy (CPP)?

The primary purpose of a commercial package policy (CPP) is to combine multiple types of commercial insurance into one comprehensive policy. This design allows businesses to customize their insurance coverage by selecting different types of coverage that suit their specific needs, such as property, liability, and business income insurance, among others. By bundling these coverages, businesses benefit from streamlined management of their insurance policies, potentially reduced premiums, and enhanced coverage options.

This combination of various coverage types helps businesses mitigate various risks they face in their operations. It simplifies the insurance purchasing process for businesses, as they can obtain multiple coverages from a single insurer, rather than sourcing different policies from multiple providers.

Other options focus on either personal lines, limited coverage (property damage only), or the nature of high-risk coverage, which do not align with the core intent of a CPP. Commercial package policies are specifically tailored for the needs of commercial entities, making it necessary to integrate diverse coverages into one cohesive policy instead of isolating them.