Commercial Package Policy (CPP)
A commercial package policy bundles two or more commercial coverage lines—typically property and general liability—into a single policy with unified terms, a common declarations page, and often a premium discount.
A commercial package policy is the most common policy structure for apartment buildings. Under ISO rules, a CPP must include at least two of the following coverage parts: commercial property, commercial general liability, commercial crime, commercial inland marine, or boiler and machinery (equipment breakdown). For apartment owners, the typical CPP combines commercial property coverage with general liability, and often adds equipment breakdown and crime coverage as optional modules.
The primary advantage of a CPP for apartment owners is administrative simplicity and cost efficiency. A single policy with one declarations page, one renewal date, and one premium invoice is easier to manage than multiple monoline policies. Carriers also typically offer a packaging credit—often 5% to 15%—that reduces the combined premium below what the individual coverages would cost if purchased separately. Additionally, because all coverage parts share common policy conditions, there are fewer gaps and conflicts between coverage forms compared to assembling separate policies from different insurers.
However, the CPP structure carries a concentration risk: if the carrier becomes insolvent or declines to renew, the owner loses all coverage lines simultaneously. Apartment owners with large portfolios may prefer to separate property coverage (placed through a surplus lines or specialty market) from liability coverage (placed with a standard admitted carrier) to diversify carrier risk. The decision between a CPP and monoline policies should be made in consultation with an insurance advisor who can evaluate the tradeoffs for the specific portfolio.