Question

In no than less than 200 words, explain a package policy and the advantages of a commercial package policy to a business frim as compared to the purchase of separate policies.

Answer 1

Package Policy: As the name itself suggests that it is a group of policies that covers various hazards in one policy.Generally the policy which covers general liability insurance and property insurance both in a single policy. It is an efficient way to save money on holding various different policies for the same coverage as in Package Policy.

Advantages of Commercial Package policies:

(i). It provides businesses a lot of flexibility and coverage for many hazards like, property & liability risk. It is considered as good for businesses as they don't have to buy a number of policies for the same coverage. Thus it saves money on premiums.

(ii). If you are having a commercial package policy for property insurance, it will also cover for the liability insurance, in order to cover injuries if any happened to your employees and customers.

Thus, it also provides employee assistance buy holding just only one commercial package policy.

For small & medium size businesses both the policies are much needed, it is even useful for big companies.

(iii). It provides greater safety assurance than holding many policies for the same benefits. We do believe in taking precautions but it is always advised to have a decent commercial package policy that can cover supply chain risks, losses from terrorism and other casualties cover to be just safe.

(iv). Though, Commercial package policies covers a number of risks, but it also gives the flexibility choose from these, so that we doesn't have to pay for unappropriate covers.