Final answer:
A Commercial Package Policy (CPP) usually offers cost savings compared to individual policies for each coverage. It is a customizable insurance solution for businesses, typically resulting in lower combined premiums.
Step-by-step explanation:
The correct statement regarding a commercial package policy (CPP) is that it typically offers lower overall premiums than purchasing several individual policies, each covering a single type of risk exposure. This is due to the bundling of multiple coverages, which often results in cost savings for the business owner.
To clarify, a Businessowners Policy (BOP) is designed for small to mid-sized businesses and includes various types of insurance coverages bundled into one policy. The BOP is similar to a homeowner's policy but for businesses. It could be considered a type of CPP, but it is generally a pre-packaged policy with predetermined coverages, while a CPP can be customized with various optional coverages.
Coinsurance is a feature that requires the insured to maintain a certain percentage of insurance relative to the value of the property to receive full reimbursement on a loss. A statement regarding 75% coinsurance is not specific to the characteristics of a CPP.
In a two-line explanation: A Commercial Package Policy (CPP) typically features lower premiums than the combined premiums for multiple separate policies. A CPP is customizable and can be more cost-effective than individual policies for each coverage.