Commercial Package Policy
What a CPP is
A commercial package policy combines two or more coverage parts under one policy with common declarations and conditions: commercial property, commercial general liability, commercial auto, crime, inland marine, equipment breakdown, and farm coverage. Each part keeps its own forms, limits, and endorsements, so one occurrence may trigger only some parts.
CGL structure
Coverage A covers bodily injury and property damage; Coverage B covers personal and advertising injury; Coverage C pays medical expenses. Limits include each occurrence, general aggregate, products-completed operations aggregate, personal and advertising injury, damage to premises rented to you, and medical expense per person. The occurrence form covers injury occurring during the policy period; the claims-made form covers claims first made during the period, subject to a retroactive date and an available extended reporting period. Key exclusions include expected or intended injury, contractual liability (except an insured contract), your product, your work, impaired property, employer's liability, pollution, and care, custody, or control of property in the insured's care.
Commercial property
Building and personal property coverage insures the building, business personal property, and personal property of others, with coinsurance, blanket or specific limits, and a choice of causes-of-loss forms (basic, broad, special). Business income and extra expense are written separately or by endorsement.
Worked example
A contractor's defective work damages the project itself - excluded as "your work." The same defective work damages a neighboring building - the resulting property damage may be covered. Rule of thumb: analyze each coverage part and each excluded property item separately.