What is 'Commercial Multiple Peril Policy'

A commercial multiple peril policy offers at least two forms of coverage, including a variety of losses incurred from numerous causes. Commercial multiple peril policies can cover a variety of losses incurred from numerous causes. Some of the types of coverage offered include business crime, business automobile, boiler and machinery, marine and farm.

BREAKING DOWN 'Commercial Multiple Peril Policy'

Commercial multiple peril insurance is the most popular type of commercial package insurance policies in the U.S. property and casualty insurance market. These policies are sold by property and casualty insurers to businesses of various types. They typically combine several property and general liability coverages under a single policy, creating a convenience in coverage for the insured. It is often available for a discount. It is rated by applying factors known as package modifications at the end of the rating process. This permits each coverage in the package to be analyzed in combination with results from the monoline coverage.

Many farmers and ranchers also purchase these policies for multiple forms of protection against incidents such as farm fires. A popular type of this type of multiple peril coverage is multiple-peril crop insurance coverage (MPCI). MPCI is a bundle of different policy options that covers loss of crop yields from drought, flood, excessive moisture, and all other natural causes. This type of coverage now allows for a combination of yield protection and price protection to further protect farmers from financial loss. Multiple-peril crop insurance is actually a product of a government partnership and 19 private insurance companies. In essence, the United States Department of Agriculture Risk Management Agency oversees the issuance of MPCIs, along with mandating what rates can be charged and what kinds of crops are automatically covered in different parts of the country. Only the select group of insurance companies that are allowed to sell MPCIs may handle the reinsurance and writing of the policies. They also adjust and process claims.

Types of Coverages Available in Commercial Multiple Peril Insurance

Commercial multiple peril insurance polices can include a wide range of insurance coverages that apply to a variety of business types. These include:

  • General Liability
  • Product Liability
  • Medical Expenses
  • Building
  • Business and Personal Property
  • Equipment Breakdown Protection Coverage
  • Business Income and Extra Expense
  • Bailee Coverage
  • Commercial Crime
  • Employee Theft and Forgery
  • Spoilage Coverage
  • Liquor Liability Coverage
  • Hired Auto and Non-owned Auto Liability
  • Barber Shops and Hair Salons Professional Liability
  • Pharmacists/Druggists
  • Beauty Salons Professional Liability
  • Directors and Officers Liability
  • Ordinance or Law Coverage
  • Utility Services
  1. Named Perils Insurance Policy

    A named perils insurance policy is a home insurance policy that ...
  2. World Insurance

    World insurance is a commercial liability policy that provides ...
  3. Liability Insurance

    Liability insurance is insurance that provides protection against ...
  4. All-Risks Coverage

    All risks coverage is insurance coverage for any incident that ...
  5. Insurance Coverage Area

    Insurance coverage area refers to the geographic region in which ...
  6. Business Income Coverage Form

    Business income coverage form insures a business against business ...
Related Articles
  1. Insurance

    Group Term Life Insurance: What You Need to Know

    Is employer-sponsored group term life insurance really a good deal? Let's take a closer look.
  2. Insurance

    An Advisor's Guide to Prof. Liability Insurance

    A guide to what financial advisors need to know about professional liability insurance.
  3. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  4. Insurance

    4 Common Misconceptions About Homeowners Insurance

    There are many misconceptions about homeowners insurance. These are the most common.
  5. Insurance

    Beginner's Guide To Auto Insurance

    Find the perfect policy that suits both your coverage and budgetary needs.
  6. Insurance

    How to Find the Right Car Insurance

    Finding the right car insurance can be difficult. However with these strategies, you can get the most for your money, protect your assets and your health.
  7. Insurance

    5 Types Of Insurance You Can (And Should) Afford

    With insurance and warranties being offered on seemingly everything, it's hard to know what policies are worth your money. Learn about five affordable insurance policies that are worth considering.
  8. Insurance

    4 Types Of Insurance Everyone Needs

    Here are four forms of insurance that are vital to have.
  9. Insurance

    Top 3 Cheapest Homeowners Insurance Companies

    When it comes to finding the cheapest homeowners insurance, it is worth taking the small amount of time required to comparison shop and find the best deal.
  10. Managing Wealth

    Are You Over-Insured?

    You can free up a lot of money by eliminating overlapping insurance policies. Read on to learn where you are most likely to be carrying double coverage.
  1. What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated and what it signifies, and learn what market analysts consider to be ... Read Answer >>
Trading Center