Commercial Package Policy (CPP)
A multi-line commercial insurance policy that bundles two or more coverage parts (property, liability, auto, crime) into a single policy.
What It Is
A Commercial Package Policy (CPP) is a single insurance policy that combines two or more coverage parts — such as commercial property, commercial general liability, commercial auto, commercial crime, and inland marine — under one policy number with a common declarations page.
The CPP is built on ISO's modular coverage part system, where each line of coverage has its own forms, conditions, and limits but shares common policy conditions and a single policy period. This modularity allows brokers to customize the package based on the insured's specific needs.
Most mid-market commercial accounts are insured through CPPs because the bundled structure offers administrative efficiency, potential premium discounts, and coordinated coverage across multiple lines.
Why It Matters for Brokers
The CPP is the workhorse of commercial insurance brokerage. Brokers must understand how coverage parts interact within a package, where gaps can occur between bundled lines, and how to structure the package to meet the insured's complete risk profile. Packaged accounts also represent higher revenue per client and better retention rates than monoline placements, making CPP structuring a critical skill for building a profitable book of business.
Real-World Example
A property management company with 12 commercial buildings packages their property ($25M TIV), general liability ($1M/$2M), commercial auto (8 vehicles), and crime ($500K) into a single CPP with one carrier. The package policy provides a 10% multi-line discount, a single renewal date, and coordinated policy conditions. The broker manages one policy file instead of four separate monoline policies.
Common Mistakes
- 1Assuming that all coverage parts in a CPP have the same policy territory or coverage triggers when each part has its own conditions.
- 2Not reviewing cross-liability provisions between coverage parts that can affect how claims are handled within the package.
- 3Missing the opportunity to add coverage parts (inland marine, crime) to existing packages where the exposure clearly exists.
How brokerageaudit.com Handles This
Policy Checker analyzes all coverage parts within a CPP to identify gaps between lines and verify that limits, deductibles, and endorsements are coordinated across the package.