Which statement regarding Commercial Package Policies (CPP) is TRUE?

A Commercial Package Policy (CPP) is indeed an elective-based policy. This means that it allows businesses to combine multiple types of coverage under a single policy, giving them the flexibility to tailor their insurance based on their specific needs. With a CPP, businesses can select from various coverage options such as general liability, property, crime, and others, allowing them to create a more personalized insurance solution rather than being restricted to a one-size-fits-all approach.

The nature of a CPP allows for the customization necessary for different types of businesses. For example, a restaurant may choose to include a property coverage to protect its premises and equipment, while also opting for liability coverage to safeguard against claims related to injuries on-site. This flexibility is a key characteristic of commercial policies, making them distinct from monoline policies, which cover only one type of risk and do not allow for such customization.

This understanding of the CPP emphasizes how it serves the diverse needs of commercial entities, as opposed to the incorrect assumptions about the inclusion of workers' compensation or the requirement for separate declarations pages. In fact, while a CPP can include workers’ compensation as part of an employer’s overall coverage strategy, it is not automatically included as part of every CPP. Similarly, while a CPP incorporates different