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🏗️ '''Commercial multi-peril insurance''' ('''CMP''') is a bundled [[Definition:Commercial insurance | commercial insurance]] product sold primarily in the United States that combines [[Definition:Property insurance | property]] and [[Definition:Liability insurance | liability]] coverages into a single policy, designed to provide comprehensive protection for businesses — particularly small and mid-sized enterprises — against a range of common perils. CMP occupies a defined statistical line within the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]] Annual Statement reporting framework, distinguishing it from monoline property or liability policies. The product is closely related to, but technically broader than, the [[Definition:Business owner's policy (BOP) | business owner's policy (BOP)]], which is itself a standardized subset of multi-peril coverage aimed at smaller, lower-hazard risks. Outside the U.S., similar bundled offerings exist under names like [[Definition:Commercial combined insurance | commercial combined]] in the UK or packaged SME policies in other jurisdictions, though the CMP designation and its regulatory reporting category are distinctly American.

📋 A typical CMP policy packages together coverage for building and contents damage from named perils (or on a special-form [[Definition:All-risks insurance | all-risks]] basis), [[Definition:General liability insurance | commercial general liability]], [[Definition:Business interruption insurance | business interruption]] or loss of income, [[Definition:Crime insurance | crime]], and sometimes [[Definition:Inland marine insurance | inland marine]] extensions for portable equipment. The precise combination of coverages is flexible — [[Definition:Underwriter | underwriters]] can tailor sections to match the insured's industry, size, and exposure profile, adding endorsements for [[Definition:Equipment breakdown insurance | equipment breakdown]], [[Definition:Spoilage insurance | spoilage]], or [[Definition:Ordinance or law coverage | ordinance or law]] as needed. Because the policy consolidates multiple lines, it typically offers a pricing advantage over purchasing equivalent coverages separately, and it simplifies [[Definition:Policy administration | policy administration]] for both the [[Definition:Insurance agent | agent]] and the insured. Carriers use sophisticated rating algorithms incorporating industry class codes, building characteristics, revenue, payroll, and geographic exposure to price CMP business, and the product is heavily distributed through independent agency networks.

🔍 Within the U.S. property-casualty market, CMP is a high-volume, relationship-driven line that forms the backbone of many carriers' small commercial books. Its profitability fluctuates with [[Definition:Catastrophe loss | catastrophe]] frequency — because the property component is exposed to windstorm, hail, fire, and other perils, severe weather years can significantly impact CMP [[Definition:Loss ratio | loss ratios]] across affected regions. [[Definition:Reinsurance | Reinsurers]] often see CMP exposure aggregated within their property catastrophe treaties. For agents and brokers, offering competitive CMP products is essential to retaining commercial accounts, as the policy is frequently the first and most important coverage a small business purchases. The line has also become a focal point for [[Definition:Insurtech | insurtech]] disruption: several technology-driven carriers and [[Definition:Managing general agent (MGA) | MGAs]] have built platforms that automate CMP quoting and binding, reducing turnaround times from days to minutes and challenging traditional carriers to modernize their small commercial workflows.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Business owner's policy (BOP)]]
* [[Definition:Commercial combined insurance]]
* [[Definition:General liability insurance]]
* [[Definition:Property insurance]]
* [[Definition:Commercial insurance]]
* [[Definition:Business interruption insurance]]
{{Div col end}}

Definition:Commercial multi-peril insurance - Revision history

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