Package Policy
What Is a Commercial Package Insurance Policy?
A package policy, or package insurance policy, is a combination policy that provides several different coverages.
Think of it as a convenient way to bundle the coverage you need under one policy — making it easier to manage your insurance and focus instead on growing your small business.
What Is an Example of a Package Insurance Policy?
An example of a package insurance policy is a combined general and professional liability policy for a service-based business. For example, a massage therapist or yoga instructor might buy one policy that includes:
- General liability insurance: Protects you if a client trips over a mat or stool and gets hurt in your space, or claims you damaged their property
- Professional liability insurance (errors & omissions): Covers your business if a client says your massage technique or instruction caused an injury or failed to deliver the service they expected
- Inland marine coverage (tools & equipment): Pays to repair or replace your movable business personal property; for example, if your mobile massage table is stolen while you’re on the go
What Coverages Are Common in Commercial Package Policy Insurance?
A commercial package insurance policy is created to protect against your unique risks. They vary by insurer, but could include a combination of coverages such as:
- Commercial general liability: For third-party bodily injury or property damage claims that happen at your business
- Professional liability: For claims related to professional errors or omissions you unintentionally make
- Inland marine (aka gear and equipment insurance): To protect your mobile business tools, equipment, and supplies against theft or damage
- Commercial property insurance: Covers your building, if owned, or business contents like inventory, furniture, and fixtures
- Business personal property: Covers your business-related items at your main business premises
Other add-ons include coverage for commercial auto, business interruption, workers compensation, and other small business exposures.
How Does a Package Policy Work for Small Businesses?
A package policy combines more than one type of coverage (most commonly general liability and commercial property) into one small business insurance policy.
For example, an insurance agent creates a policy tailored to your business needs. Then, your business is protected by those various coverages — each kicks in to do its job when you need to file a claim.
For many small businesses, this setup is easier to manage and is often more cost-effective than buying each coverage separately.
A package policy may make sense for your business if:
- You rent or own a space and want to protect both your building and what’s inside it
- You use equipment, tools, or inventory that would be expensive to repair or replace
- You want fewer policies to manage and prefer working with a single insurer
- You’d like to reduce the chance of gaps between separate liability and property policies
Package Policy vs Buying Separate Insurance Policies: What’s Better?
When considering purchasing insurance as a package or separately, think about how you want your coverage to work for you.
- Separate policies: Each coverage has its own contract, premium, and renewal date
- Package policy: Each coverage is grouped under one easy policy
Small business owners often prefer package policies because they can be simpler to manage. They may also offer pricing advantages or built-in coverages that would otherwise need to be added individually.
Commercial Package Policy vs Separate Insurance Policies: A Quick Guide
Swipe →
| Package Policy | Separate Policies | |
|---|---|---|
|
Number of Policies |
One combined policy |
Multiple individual policies |
|
Types of Coverage |
Bundles multiple coverage types |
Liability, property, and other coverages are each purchased separately |
|
Cost Efficiency |
Often priced more competitively as a bundle |
May cost more when each coverage is purchased alone |
|
Ease of Management |
One bill, one renewal, and one insurer to contact |
Multiple bills, renewal dates, and insurers to contact |
|
Customization |
Can be customized with endorsements and add-ons |
Each policy can be tailored separately, but requires more handling |
Additional Resources
Get tailored coverage by selecting your industry below.