Illinois Property Insurance Basic Principles Practice Test

A package policy approach uses the same structure for both BOP and CPP: property coverage is provided under the Business Property Policy form, while liability coverage is provided under the Commercial General Liability form. This alignment keeps the property and liability components consistent across both policies, making it easier to manage limits, endorsements, and exclusions. Other options introduce coverages not used for these packages—for example, Inland Marine covers movable or in-transit property, E&O is professional liability, and there isn’t a separate Personal Liability policy used in this context.