A commercial package policy (CPP) generally provides protection for a wide variety of perils such as property and liability risk, as well as other perils that arise during a business operation. Commercial package policies allow a business owner to take an increasingly flexible approach when it comes to obtaining insurance coverage.
For example, a policy may be created for all business property, including vehicles and equipment used in the operation of a business. If an individual or family of employees has an accident with a vehicle in your vehicle lot, you might find that you are not covered for the full extent of the medical expenses associated with that accident. In this case, a commercial package policy is designed to provide adequate coverage for the repair or replacement costs of the automobile, as well as any personal damages sustained by the customer or employee. It may also include coverage for any personal injuries sustained by customers, patrons or employees.
An additional policy might also be required if you are responsible for the care of any animal, including a pet, at the facility. The insurance policy should include coverage for damages done to the animals, as well as liability for their care. Additional coverage will also protect your business against lawsuits, should a customer or employee have an accident while using the facility.
Commercial package policies are also designed to pay for your legal fees and other expenses incurred during the course of your operations. Such fees can include, among other things, any judgments awarded against you due to customer injury lawsuits. It might also cover legal fees incurred to defend your company from claims made by clients or competitors that may be based on your activities. The policy might also pay for medical costs and legal fees incurred during your defense of any lawsuits or claims. Additionally, a commercial policy might pay for lost wages, if an employee has an accident and is unable to work after treatment.
Generally, there are no restrictions on how large a single incident or perils covered by commercial policy can be. This means that a policy might cover for the repair of a broken fence during a severe thunderstorm, or a fire during the middle of the night.
For small business owners, especially, the cost of insurance can add up quickly. In order to save money on your commercial coverage, it is in your best interest to create a comprehensive, and customized policy that offers maximum coverage at the most reasonable price.