Commercial Package Policy Layout Template
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Commercial Package Policy Layout

Prepared by: [YOUR NAME]

Introduction

This Commercial Package Policy (CPP) Layout document is intended to provide a comprehensive, detailed, and informative outline of the components and structure of a typical CPP. The objective is to help businesses understand the layout and the fundamental aspects of their commercial insurance coverage.

Section 1: Declaration Page

The Declaration Page serves as the summary of the policy for the insured. It includes crucial information about the insured and the coverage provided by the policy.

  • Insured's Name and Address

  • Policy Number

  • Policy Period

  • Description of Business

  • Coverages and Limits

  • Deductibles

  • Premium Amount

Section 2: Common Policy Conditions

This section outlines the general conditions that apply to all coverages provided by the CPP. It includes the following:

  1. Cancellation Clause

  2. Changes Clause

  3. Examination of Records Clause

  4. Inspections and Surveys Clause

  5. Premium Payment Clause

  6. Transfer of Rights and Duties Clause

Section 3: Coverage Parts

The CPP can include various types of coverage parts. Each coverage part comes with its own set of conditions, exclusions, and definitions.

Coverage Part

Description

Commercial Property

Covers damage to the building and its contents, including machinery, furniture, and inventory.

General Liability

Protects against claims of bodily injury and property damage arising out of business operations.

Commercial Auto

Provides coverage for company-owned vehicles used for business purposes.

Inland Marine

Covers property in transit, mobile equipment, and assets used in construction.

Crime

Protects against losses from theft, burglary, and other crimes.

Equipment Breakdown

Covers loss due to mechanical or electrical equipment breakdown.

Business Income

Covers loss of income due to a covered loss that disrupts business operations.

Section 4: Policy Endorsements

Policy endorsements are additional forms attached to the CPP that modify, extend, or restrict coverage. They must be listed and described:

  • Additional Insured Endorsement: Adds another party as an insured under the policy.

  • Waiver of Subrogation Endorsement: Prevents the insurer from seeking reimbursement from a third party.

  • Ordinance or Law Endorsement: Covers increased costs due to compliance with building laws after a loss.

  • Flood Insurance Endorsement: Provides coverage for flood-related losses.

  • Earthquake Endorsement: Offers protection against damage caused by earthquakes.

Section 5: Exclusions

This section details the exclusions, or instances when coverage is not provided. It is crucial for policyholders to understand these limitations:

  • War and Military Action

  • Nuclear Hazard

  • Pollution

  • Intentional Acts

  • Employee Dishonesty

  • Wear and Tear

Conclusion

A Commercial Package Policy provides flexible and comprehensive coverage for various risks associated with business operations. By understanding the layout and details of each section, businesses can make informed decisions about their insurance needs and ensure they have adequate and appropriate coverage.

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