Commercial package policy (CPP)

A commercial package policy is a modular business insurance policy built from two or more coverage parts selected to fit the insured's operations. Every CPP starts with common policy declarations and common policy conditions that apply across the whole policy, and then adds the chosen coverage parts, each with its own forms and limits.

Available coverage parts typically include commercial property, commercial general liability (CGL), commercial crime, inland marine, commercial auto, equipment breakdown (boiler and machinery), and farm coverage. Because the insured picks only the parts it needs, a CPP is highly customizable — and insurers usually apply a package discount, making the bundle cheaper than buying the same coverages as separate monoline policies. One notable exclusion from the package: workers compensation cannot be included in a CPP and must always be written as its own policy.

The CPP is often contrasted with the business owners policy (BOP). A BOP is a pre-packaged bundle of property and liability coverage designed for small, low-risk businesses, with less flexibility; the CPP suits larger or more complex businesses that need to tailor their coverage parts individually.

Property and casualty licensing exams test the CPP structure — know the role of the common declarations and conditions, which coverage parts can be included, that workers compensation cannot, and how a CPP differs from a BOP.