What Is a Commercial Package Policy?

A Commercial Package Policy (CPP) is a flexible business insurance solution that combines multiple types of coverage into one comprehensive policy. Instead of purchasing separate insurance policies, a CPP allows businesses to bundle key coverages under a single contract, simplifying protection and often reducing overall cost.

A Commercial Package Policy can be customized to fit the specific risks of your business, providing broad protection for your property, operations, and liability exposures.

A Commercial Package Policy (CPP) can be used to insure apartment buildings with over 60 units and six stories, if they meet underwriting guidelines.

Unlike a Business Owners Policy (BOP), which is typically limited to smaller, lower-risk properties, a CPP is designed for larger and more complex risks, including high–unit-count and mid- to high-rise apartment buildings.

What Does a Commercial Package Policy Typically Include?

A CPP may include a combination of the following coverages:

• Commercial property insurance

• General liability insurance

• Business interruption or income coverage

• Equipment breakdown (optional)

• Crime coverage (optional)

• Inland marine coverage (optional)

Coverage options vary based on your business type, location, and insurer requirements.

What Property Is Eligible for Coverage Under a CPP?

Commercial property coverage within a CPP can protect many types of business-owned property, including:

• Office buildings

• Retail stores

• Warehouses

• Manufacturing facilities

• Mixed-use commercial buildings

Coverage may apply to buildings you own or lease, depending on the policy structure.

Business Personal Property

• Furniture, fixtures, and equipment

• Machinery and tools

• Computers and electronic equipment

• Inventory and stock

• Supplies and materials

Additional Property That May Be Eligible

• Outdoor signs (subject to limits)

• Tenant improvements and betterments

• Property in transit or temporarily off-site (with endorsement)

Eligibility depends on the nature of the business, property condition, construction type, and loss history.

Property That Is Typically Not Eligible

Some properties may require specialized insurance or separate policies, such as:

• Vacant or unoccupied buildings

• Properties in poor condition or under major renovation

• Highly hazardous or specialized operations

• Certain high-risk locations or industries

We can help determine eligibility and recommend appropriate alternatives when needed.

Important Eligibility Considerations

While CPPs are commonly used for larger apartment buildings, eligibility depends on several underwriting factors, including:

• Number of units and total square footage

• Number of stories

• Construction type (frame, joisted masonry, non-combustible, etc.)

• Year built and renovation history

• Fire protection (sprinklers, alarms, hydrants)

• Occupancy and vacancy rates

• Location and catastrophe exposure

• Loss history

Some very large or high-rise buildings may still require specialty or surplus lines coverage, depending on these factors.

How CPPs Compare to Other Policies

• Business Owners Policies (BOPs): Typically limited to smaller apartment buildings and lower unit counts

• Commercial Package Policies (CPPs): Suitable for larger apartment buildings, including those with 60+ units and six or more stories, subject to underwriting

• Specialty or Habitational Programs: Used for higher-risk or high-rise properties that fall outside standard markets

A Commercial Package Policy is often the appropriate insurance solution for large apartment buildings that exceed standard BOP limits. However, final eligibility and coverage terms are determined by the insurer based on underwriting review.

Why Choose a Commercial Package Policy?

A CPP offers:

• Simplified insurance management

• Customized coverage tailored to your business

• Potential cost savings compared to standalone policies

• Consistent coverage terms across multiple protections

It’s an efficient way to ensure your business is protected from multiple risks under one policy.

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