Commercial Package Policy (CPP) – Michigan Property Casualty Insurance (2024)

Policies that cover property and building used for business. The package policy will combine two or more coverages into one policy.

A CPP can include:

Commercial property

Commercial inland marine

Commercial crime

Commercial general liability

Commercial auto

Equipment breakdown

Farm coverage

Ocean marine, workers’ compensation, umbrella, and aviation are not part of the CPP

Components of a Commercial Policy

A commercial package policy consists of

Common policy declarations

Common policy conditions

Two or more coverage parts = CPP

One coverage only = monoline policy

Business selects coverages needed or desired

Components of a Commercial Policy

-Common Policy Declarations includes the insured’s name, Address, Policy Period, Premium, and a description of the business.

-Common Policy Conditions (FIRST NAMED INSURED IS IMPORTANT)

· Cancellation can happen at any time but this can only be executed by the first named insured. You must give the company written notice.

· Changes can also happen at anytime and only by the first named insured. Endorsem*nts are used to make these changes which are used if changing one policy in the CPP.

· Examination of Books and Records can be completed by the insurance company up to three years afterwards.

· Inspections and Surveys can be conducted by the insurance company and recommendations can be made to reduce risk. Surveys are used in order to determine rating classifications.

· The first named insured is responsible for paying the premium for the policy.

· The insurance company must approve a transfer of their rights from the first named insured to another individual or organization.

· If the insurance company nonrenews your policy, the must do it in writing prior to the expiration of the current policy.

· Interline Endorsem*nts are used when you want to make changes on two or more of the policies included in the CPP.

Common Policy Declarations

A common first page of the insurance policy that will list insured name and address, the policy period, premium amount, and a list of coverages that apply. Also a description of the business.

Common Policy Conditions

Common conditions apply such as both parties have the right cancel the policy, changes, examination of books and records, transfer of rights and duties, premiums, and inspections and surveys.

Interline Endorsem*nts

An endorsem*nt that affects more than one portion of the CPP

Commercial Property

Commercial Property Conditions Form

In all commercial policies and establishes policy provisions for concealment, fraud, misrepresentation liberalization ,no benefit to Bailee, transfer of recovery rights, control of property, legal action against the insurer, policy period and coverage territory.

Coverage Forms

Used to cover a direct physical loss with commercial property and buildings

Building and Personal Property

Property that can be covered are building, the insured’s business personal property, and named property in the care, custody and control of the names insured.

Buildings: Covers completed additions and fixtures, as well as permanently attached machinery.

Business personal property: Includes business property of the insured within the building and within 100 feet of the dwelling. Can also include leased personal property that the insured has a contractual obligation.

Personal property of others: Property in the care, custody and control of the names insured.