Definition
Commercial Multiple Peril (CMP) Insurance is a policy designed to offer a spectrum of coverages, combining both property and liability protections under a single package. This bundled approach helps businesses manage various risk exposures through one policy.
Coverage Details
CMP insurance typically amalgamates multiple coverage types, which may include, but are not limited to:
- Fire: Protection against fire damage to ensure business continuity.
- Allied Lines: This may involve multiple forms of coverage related to property, such as glass, flood, or earthquake damage.
- Difference in Conditions (DIC): Covers losses not typically insured under standard policies, bridging gaps in coverage.
- Liability Coverage: Shields the enterprise from claims arising out of business operations, excluding auto-related claims.
Purpose
The primary objective of CMP Insurance is to provide comprehensive coverage that addresses a wide range of risks in one policy, simplifying risk management for business owners. It’s particularly useful for medium to large businesses that face numerous and varied risk exposures.
Applicable Policies
Included under the umbrella of CMP are typically policies that cover mulitple perils, excluding farmowners, homeowners, and automobile policies.
This type of insurance is integral in ensuring that businesses are adequately prepared and protected against multiple potential perils that could impact their operations and financial stability.
