Glossary · Insurance agency commissions
Commercial package policy (CPP)
A commercial package policy (CPP) combines two or more commercial coverage parts, such as property, general liability, crime or inland marine, in one policy for businesses that don’t fit a businessowners policy, with each part rated separately.
What it means
The NAIC glossary says a commercial package policy “provides a broad package of property and liability coverages for commercial ventures other than those provided insurance through a business owners policy.” Triple-I’s article on workplace injuries adds that workers compensation is “not included in Commercial Package Policies (CPPs) or Business Owners Policies (BOPs).”
Where a BOP is a fixed bundle, a CPP is assembled from parts, so its premium is the sum of separately rated pieces.
How it shows on a commission statement
Carriers differ in how they show a CPP on a statement: one line for the whole policy, or one line per coverage part. If your commission schedule lists different rates by line, a CPP is where a part can be paid at the wrong one. General liability parts rated on sales or payroll are audited after the term, so expect audit lines months later; see commission on premium audits. Adding a location or a coverage part mid-term arrives as an endorsement; see commission on mid-term endorsements. Larger CPPs are more often agency billed.
Example
| Policy | Part | Premium | Rate | Commission |
|---|---|---|---|---|
| EX-67450 | Property | 6,000.00 | 15% | 900.00 |
| EX-67450 | General liability | 4,000.00 | 15% | 600.00 |
| EX-67450 | General liability audit | −800.00 | 15% | −120.00 |
| Total | 9,200.00 | 1,380.00 |
The audit adjusts only the liability part; the property part is unchanged. Commission rates on this page are invented; your agency agreement and commission schedule set the real ones.
Common mistakes to check
- Checking the CPP total but not each part’s rate when the schedule differs by line.
- Assuming the whole package is audited when only a liability part is.
- Expecting workers’ comp or commercial auto inside the package.
Questions
What is a commercial package policy?
A commercial policy combining two or more separately rated coverage parts, such as property and general liability, for businesses that don’t fit a BOP.
Is a CPP audited?
Parts rated on exposures known only later, often general liability on sales or payroll, can be. The audit adjusts that part and the commission on it.
How do carriers pay commission on a CPP?
Some show one line for the policy, others a line per coverage part. Either way, compare each with the rate your schedule gives for that line.
Sources
- National Association of Insurance Commissioners, Glossary of Insurance Terms, entry for commercial package policy. Retrieved October 14, 2026.
- Triple-I (Insurance Information Institute), Steps to reduce workplace injuries. Retrieved October 14, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: businessowners policy.