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What Are Package Policies?

Package policies, also called multi-line policies, are insurance policies that combine various basic property and liability policies into a single, larger policy. In so doing, they reduce the number of contracts and records involved, often make the policy easier to understand, and can also reduce the overall cost to obtain a series of coverages. They also allow for the creation of customized policies for the particular needs of an insured. Homeowners insurance, which combines property, liability, and theft coverage, is a common example of a package policy.

What Are Commercial Package Policies?

In the business context, these policies are generally referred to as commercial package policies (CPPs). With CPPs, you, the business owner, can cover virtually all types of commercial risk in a single policy. The following are the types of coverage your CPP can contain:

  • Commercial property
  • Farm
  • Commercial inland marine
  • Commercial general liability
  • Boiler and machinery
  • Commercial crime
  • Commercial auto

Two kinds of coverage not available in a CPP are ocean marine and aviation insurance.

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Commercial Package Policy Structure

The general structure of a CPP consists of these three parts:

  • Policy declarations that apply to all coverages--This information includes the insured's name and address, the policy period, a description of the business, the types of coverage chosen, and a list of the applicable forms.
  • Policy conditions that apply to all coverages--The types of conditions in this section include cancellation, making changes, premium payment and return, the insurance company's rights to examine your records, the insurance company's rights to inspect your premises, and assignment of your rights and responsibilities.
  • Two or more coverage parts--A CPP combines at least two lines of coverage that could otherwise exist in individual (mono-line) policies. Each line of coverage is represented in the CPP by a coverage part, which presents the provisions that are unique to that type of coverage.

 

 

This material was prepared by Broadridge Investor Communication Solutions, Inc., and does not necessarily represent the views of The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

 

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

 

The Retirement Group is a Registered Investment Advisor not affiliated with FSC Securities and may be reached at www.theretirementgroup.com.



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