What is a commercial package insurance policy?

A commercial package policy (CPP) is exactly what it sounds like—a package of commercial policies. A commercial package policy combines two or more coverages like commercial property and commercial general liability, business crime, equipment breakdown, inland marine, and commercial auto liability.

What are the insurance policy limits?

A limit is the highest amount your insurer will pay for a claim that your insurance policy covers. Think of it this way: It’s like filling up a fishbowl. If you file a covered claim, your insurance policy will pay up to a certain amount. You’re responsible for any expenses that exceed the limit.

How many types of limits are found in a commercial auto policy?

There are two types of payout limits you can select on your liability policy: Combined single limits and split limits. Split limits are those that define the most your insurance company will pay for these three items: Maximum Bodily Injury payment per person.

What is the minimum coverage for commercial insurance?

California state law requires all commercial auto policies to have a minimum liability limit of $15,000 per person, $30,000 per accident for bodily injury and $5,000 for property damage (i.e. 15/30/5). Some policies are required to carry higher limits based on the types of vehicles they insure.

What is the benefit of a commercial package policy?

A commercial package policy allows a business to take a flexible approach to obtain insurance coverage. The benefit of CPP is that it may allow the business to pay out a lower amount of premiums than if it purchased a separate policy for each risk.

What is the difference between a commercial package policy and a business owner’s policy?

A BOP is designed for more smaller businesses with less risk, while a Commercial Package policy is meant for a more risky business.

Do insurance companies pay more than policy limits?

Every auto insurance policy has a limit, which is the maximum amount an insurer will pay out for an insurance claim if the policyholder is being sued. Although insurance companies are required to negotiate settlements in good faith, there is no legal requirement to offer more than the policy limits for a claim.

Who pays the damages that exceed the policy limits?

2.1. Bodily injury liability insurance will pay damages up to the limits of the policy. Drivers are personally liable for any amounts in excess of this limit.

Does a commercial auto policy cover pollution?

Standard business Auto policies exclude coverage for pollution events unless they result from gas, brake fluid, or other substances that are vital to the operation of the vehicle. So if your insured rolls their truck and leaks oil and hydraulic fluid, cleanup costs are typically covered.

What are the limits for commercial general liability?

Commercial general liability on an occurrence coverage form. The limits of liability shall not be less than: $1,000,000 each occurrence (combined single limit for bodily injury and property damage); $1,000,000 for personal and advertising injury liability;

What are the minimums for commercial auto insurance?

CSL: Combined single limit. Some insurance liability minimums are listed as a single number, such as $500,000. BI and PD: Bodily injury and property damage. Three numbers: If you see three numbers, they define minimum liability coverage for bodily injury and property damage.

What are the policy limits of an insurance policy?

Policy limits If your business has a covered loss, your insurer will cap how much it will pay to settle your claim . These caps are known as policy limits (or limit of liability).

What are the limits for commercial auto insurance in Connecticut?

Connecticut commercial auto requirements. 1 1-7: 50/100/10 or $100,000 single limit. 2 8-12: 50/150/10 or $150,000 single limit. 3 13-20: 50/200/10 or $200,000 single limit. 4 21-30: 50/250/10 or $250,000 single limit. 5 31+: 50/300/10 or $300,000 single limit Intrastate property carriers: 200/600/100.