What is a Special Multi-Peril Package?
A Special Multi-Peril Package, also known as an SMP, is a commercial insurance policy that eliminates the need for several insurance policies by combining their coverages into one policy. Because of the nature of its coverage, a Special Multi-Peril Package is a package policy wherein a number of policies are rolled into one.
A Special Multi-Peril Package can be changed to meet the needs of each insured business, but liability and property coverage are a fundamental and required part of the package.
An SMP is often discounted so that it becomes cheaper compared to buying several different policies.
The term multiple-peril coverage is rarely used today in commercial insurance although the term was once more common. Today, most insurance companies offer similar package plans to businesses for multiple-peril coverage such as the Business Owners Policy (BOP) and the Commercial Package Policy (CPP).
However, Multi-Peril coverage is a broader, more inclusive term than either Business Owners Policy or Commercial Package Policy. For example, Multi-Peril coverage is common in Commercial Auto insurance where it may provide coverage for liability, property damage and medical payments.
What is a Business Owners Policy (BOP)?
The most common Multi-Peril Package is the Business Owners Policy or Business Owners Package commonly referred to as a BOP. A Business Owners Policy covers a variety of risks that face a typical small business. A BOP is ideal for small businesses that do not face specialized risks.
Like the traditional Special Multi-Peril Package, the most basic coverages included in a Business Owners Policy are property and liability insurance coverage. Additional coverages can be bundled with the BOP, such as Business Interruption Insurance but the choices of additional coverages are limited since the policy is designed for a typical small business without specialized risks.
More about Business Owner's Policies
What is a Commercial Package Policy (CPP)?
For businesses that are larger or face specialized risks due to the nature of the business, most insurance companies now offer a Commercial Package Policy, (also known as a CPP), to cover multiple perils. Like the traditional Special Multi-Peril Package and the Business Owners Policy, a Commercial Package Policy includes general liability and property insurance as basic coverages of the package policy.
Other specialized risk coverages can be added to a Commercial Package Policy, far beyond the additional coverages offered with a Business Owners Policy (BOP) which is more basic and designed for a typical small business.
Additional coverages available with a Commercial Package Policy include:
Business Income Insurance
Business Vehicle (or Fleet) Insurance
Business Crime Insurance
Commercial Umbrella Liability
Electronic Data Processing Coverage
Equipment Breakdown Insurance
(also known as Boiler and Machinery Insurance)
Employment Practices Liability
Inland Marine Insurance
Pollution Liability Insurance
Supply Chain Risk Insurance
Farming or Ranching Losses
and more can also be included in a Commercial Package Policy.
Save money and include many of the risks particular to your business with one Special Multi-Peril Package policy from from Alliance Insurance Agency Services, Inc. Consult with a commercial insurance specialist from Alliance Insurance to determine which plan best protects your business at the lowest cost.