What You Need to Know About Commercial Package Policy (CPP) in California

A commercial package policy (CPP) is a type of insurance that combines both commercial general liability and commercial property insurance. This policy is designed to lower costs, broaden coverage, and make the buying process simpler. 

CPPs are among the most commonly purchased insurance policies in the United States. Combining two of the most popular coverages offers value for customers and insurance companies. It is similar to a business owners policy (BOP) but is intended for larger, higher-risk businesses. 

The CPP follows general policy forms provided by the Insurance Services Office, which are considered the industry standard. The only difference between CPP and BOP is that CPP packages everything together in a single policy, which is more customizable for your business.

Who Needs a Commercial Package Policy (CPP) in California?

Businesses in California that need both commercial general liability and property insurance should look into a CPP. It is ideal for businesses of all sizes, especially those with higher risks or specific needs. Common industries that benefit from the CPP include retail stores, hotels and hospitality, healthcare facilities, services companies, technology firms, agriculture businesses, and manufacturing plants.

What Does a CPP Cover?

A CPP policy typically covers a variety of liabilities that relate to the business’s operations, such as property damage and liability for bodily injury caused by employees or products. It may also cover specific risks associated with certain industries. Common coverages in a CPP policy include:

• Commercial Property Insurance: Covers the physical property owned by a business. This includes buildings, equipment, furniture, inventory, supplies, and other items used in the business's operation. It helps to protect against loss or damage due to natural disasters, accidents, or theft. 
• General Liability Insurance: Protects businesses from financial loss due to a negligence claim resulting in property damage, bodily injury, or personal injury. It is important to have this coverage because it helps cover legal costs and other expenses associated with a lawsuit.
• Business Interruption Insurance: Protects businesses from financial losses due to a disruption in operations. This type of insurance covers lost income, as well as additional expenses associated with the interruption in operations, such as relocation costs or extra staff needed to get back up and running.

In addition to the above, there are other coverages bundled within a commercial package policy to offer more broad and diverse coverage for businesses with a lot of demanding coverage needs. They are:

• Commercial Auto Insurance: Covers vehicles owned or leased by a business for use in the operation of the business. It includes coverage for bodily injury and property damage caused by accident involving one of these vehicles, as well as liability protection if one of your employees is operating a vehicle for business purposes.
• Commercial Crimes Insurance: This specialized type of coverage helps protect businesses against theft, fraud, and other crimes. It covers losses due to employee theft, embezzlement, forgery, and computer crime.
• Commercial Umbrella Insurance: Provides additional coverage for claims that exceed the limits of a business’s other policies, such as general liability or commercial auto insurance. It helps protect businesses from large and unpredictable losses.
• Pollution Liability: Protects businesses from financial loss due to pollution that is caused by their operations. This coverage helps cover the costs of cleaning up a pollution site and paying for any damages caused by the pollution.
• Equipment breakdown: Covers the costs of repairing or replacing damaged equipment due to mechanical breakdowns, power surges, or operator errors.

A CPP policy can provide businesses in California with comprehensive protection at an affordable price. It is important to work with Brighton Financial and Insurance Services to determine which coverages are right for your business and what limits are necessary to provide the best protection for you.

What’s Not Covered in a CPP?

No matter how flexible a CPP policy is, there are certain coverages that cannot be included. These may include:

• Workers' Compensation: Workers' compensation coverage is required in most states and must be purchased separately. This type of coverage helps protect employees if they are injured while on the job, as well as provides financial protection for businesses in the event of a lawsuit brought by an employee due to a workplace injury or illness.
• Key Person Insurance: Key person insurance is a type of life insurance that a business buys on a key executive or employee who is crucial to the business's success. The policy pays out a death benefit to the business in the event of the key person's untimely death, which helps protect against financial loss and disruption due to the individual's death.
• Directors & Officers Insurance: Directors and Officers insurance is a specialized type of coverage that protects the personal assets of directors, officers, board members, and other key individuals within an organization from financial loss due to claims related to their duties. It helps to provide protection against issues such as wrongful acts, mismanagement, or breach of fiduciary duty.
  

What are the Benefits of a CPP?

The CPP is a great choice for many companies in California because it offers several benefits. The top benefits of a CPP are:

a) The CPP is More Affordable: Having multiple insurance policies bundled into one package, known as a commercial package policy, can benefit businesses. For example, if a business owns a retail store and the building it is located in, this type of policy would cover both liability from the retail store and property damage. This is beneficial because it allows the insurance company to spread its risk over multiple types of coverage, such as liability and property. This is especially advantageous for the business, as having both types of insurance in one policy makes it easier for the company to absorb claims without increasing their rates.

b) Less administration: A CPP policy covers all of your insurance needs and thus requires less paperwork and administration. One policy means only one bill to pay, one renewal date to remember, and one contact for questions or claims. This makes it easier for business owners to keep track of their coverage.

c) Easier claims process: When a claim occurs, a CPP policy simplifies the process by combining all of your coverage into one policy. As a result, you don't have to worry about multiple policies and different claims processes for each. The insurer will handle all of the details for you.

d) Flexible coverage: A CPP Policy is designed to be customizable so that it can fit your business's individual needs. You can add and remove coverage as needed to make sure you have the protection that is right for you.

e) Broad coverage: CPP policies typically cover a wide range of common risks, such as property damage, fire and water damage, theft, liability, business interruption, and more. This allows businesses to have the protection they need without purchasing multiple policies.

f) More company options: A CPP policy can give business access to more insurance companies and coverage options, as they often have specialized packages or coverage that may not be available through other policies. This allows businesses to find the best coverage and price for their unique situation.

What Is the Cost of a Commercial Package Policy (CPP) In California?

The cost of a commercial package policy in California will vary depending on a number of factors:

• Industry: The type of industry that a business operates in will impact the cost of a CPP. Industries such as manufacturing and construction tend to have higher premiums due to the increased risk of accidents and incidents that may occur.
• Coverage limits: The amount of coverage purchased also impacts the premium rates for a policy. Purchasing higher limits will generally result in higher premiums.
• Location: The location of the business and the state in which it operates can also affect the cost of a CPP. Certain areas may be prone to higher risks, such as flooding or earthquakes, which will impact the policy's premium rate.
• Number of employees: The number of employees a business has can also impact the cost of a CPP. More employees can increase the risk of accidents and incidents, resulting in higher premiums.
• Value of property: The value of the property covered under the policy can also influence the cost. Higher property values will generally result in higher premiums.
• Claims history: A business's claims history can also affect the cost of a CPP. Businesses with a history of filing claims may be charged higher premiums.

The best way to determine the cost of a Commercial Package Policy in California is to speak with an insurance agent who can evaluate your business needs and provide quotes from several reputable insurers.

Have Questions? Talk to A California Commercial Package Policy Agent Today!

If you are looking for a Commercial Package Policy in California, it’s important to find an agent who is knowledgeable and experienced in this type of coverage. At Brighton Financial and Insurance Services, our agents have the expertise to help you find the right CPP policy that meets your specific needs and budget.



We understand that businesses come in all shapes and sizes and have different coverage requirements – which is why our agents take the time to understand your business and ensure that you get a policy that meets your specific needs.

By working with Brighton Financial and Insurance Services, you can be sure you are getting the coverage your business needs at the best price possible. Contact us today – we look forward to helping you get the perfect policy for your business!