Commercial Insurance Blog

A Package Policy is a type of insurance policy that usually includes more than one kind of insurance coverage. The most common Package Policy combines property coverage, such as for buildings or business contents, with liability coverage, such as premises liability or product liability.

One advantage to packaging coverages is the cost. When a single company can provide coverage for several lines of business, such as property, liability, business income and so forth, they can offer pricing considerations.

A Businessowners Policy (BOP) is the most common and broadest type of Package Policy, but other package policies comprise the majority of commercial insurance programs when more than one line of insurance is written by the same insurance company.

For example, a company with no property except a marine and liability exposure could have a Package Policy covering those two lines. A Package Policy may be used when the business doesn't qualify for a BOP.

Two coverages included in a BOP that might need to be priced specifically are business income and product liability. For example, many restaurants use a Package Policy because the product liability - food poisoning or choking – needs to be specifically rated.

Similarly some businesses have such large business income and extra expense needs that this coverage also needs to be rated specifically. 

The advantage to a non-BOP Package Policy is that you only need to purchase coverage relevant to your needs. A Businessowners Policy includes many coverages that may not be relevant to your exposure, or could be necessary but reflect unanticipated needs.

Certain lines are very rarely included under a Package Policy, most commonly Workers Compensation and Automobile or Fleet insurance.  These generally stay as separate policies because of their highly regulated nature and their disparate underwriting considerations.

To find out more about what which Package Policy is right for you, call the insurance professionals at Gordon Atlantic toll free at (800) 649-3252.  Prefer to type instead of talk?  Click below.