---
title: "What Is a Commercial Package Policy (CPP)? — Lapidar"
url: https://getlapidar.com/glossary/commercial-package-policy/
description: "A commercial package policy combines separately rated coverage parts. CPP vs BOP, audits of liability parts, and checking commission by part."
last_modified: "Wed, 14 Oct 2026 06:20:12 GMT"
source: getlapidar.com (HTML converted to Markdown at the edge)
---

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.

By Lapidar, the team building it · October 14, 2026 · Also called CPP; package policy; commercial package

## What it means

The NAIC [glossary](https://content.naic.org/glossary-insurance-terms) 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](https://www.iii.org/article/steps-to-reduce-workplace-injuries) adds that workers compensation is “not included in Commercial Package Policies (CPPs) or Business Owners Policies (BOPs).”

Where a [BOP](https://getlapidar.com/glossary/businessowners-policy/) 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](https://getlapidar.com/guides/commission-on-premium-audits/). Adding a location or a coverage part mid-term arrives as an endorsement; see [commission on mid-term endorsements](https://getlapidar.com/guides/commission-on-mid-term-endorsements/). Larger CPPs are more often [agency billed](https://getlapidar.com/glossary/agency-bill/).

## Example

**Example data: an invented CPP shown by coverage part.**

| 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](https://content.naic.org/glossary-insurance-terms), entry for commercial package policy. Retrieved October 14, 2026.
- Triple-I (Insurance Information Institute), [Steps to reduce workplace injuries](https://www.iii.org/article/steps-to-reduce-workplace-injuries). Retrieved October 14, 2026.

Lapidar is [commission reconciliation software for independent insurance agencies](https://getlapidar.com/), in its founding pilot. Related: [businessowners policy](https://getlapidar.com/glossary/businessowners-policy/).

In this entry

1. [What it means](https://getlapidar.com/glossary/commercial-package-policy/#meaning)
2. [On a commission statement](https://getlapidar.com/glossary/commercial-package-policy/#on-statement)
3. [Example](https://getlapidar.com/glossary/commercial-package-policy/#example)
4. [Common mistakes](https://getlapidar.com/glossary/commercial-package-policy/#mistakes)
5. [Questions](https://getlapidar.com/glossary/commercial-package-policy/#faq)
6. [Sources](https://getlapidar.com/glossary/commercial-package-policy/#sources)

All 86 terms, from account current to written premium.

[Glossary A–Z](https://getlapidar.com/glossary/)

Check each coverage part against the rate your schedule gives it.

[See a sample report](https://getlapidar.com/sample-report/)

## Reconciling statements is the hard part.

Check each coverage part against the rate your schedule gives it. [See a sample report](https://getlapidar.com/sample-report/), or read [how the founding pilot works](https://getlapidar.com/pilot/).

[Open an account — founding pilot](https://app.getlapidar.com/signup)

[See a sample report](https://getlapidar.com/sample-report/)