Which of the following statements regarding Commercial Package Policies (CPP) is TRUE?

A Commercial Package Policy (CPP) is designed to offer businesses the flexibility to combine various types of insurance coverages under a single policy. This allows policyholders to tailor their insurance to better fit the specific needs of their business, by including multiple types of coverage such as property, liability, and additional endorsements—all in one package. This approach not only streamlines administration but also can be more cost-effective for the insured.

The other statements do not accurately represent the characteristics of a CPP. For instance, while a CPP does contain various coverages, it does not inherently require a separate declarations page for each coverage, as coverage details are commonly included in a unified declarations page. Additionally, while general liability coverage may be included in some CPPs, it is not automatically included and must be selected by the insured, making that statement misleading.