What is a Special Multi-Peril Package?
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.