What term describes a commercial policy that provides two or more property and liability coverages in one contract?

• A. Package Policy
• B. Monoline Policy
• C. Unit Policy
• D. Endorsement Policy

Answer: (A)

A package policy bundles multiple coverages into one contract, which is why it fits a commercial policy that provides two or more property and liability coverages in a single agreement. In commercial insurance, this type of policy combines lines such as property and general liability (and sometimes additional coverages) under one policy, making administration simpler and often offering premium efficiencies because the underwriting and policy management are centralized.

A monoline policy, by contrast, covers only one line of business (either property or liability), so it wouldn’t provide two or more coverages in one contract. A unit policy isn’t a standard term for this concept, and an endorsement is a form that modifies an existing policy rather than a standalone, multi-coverage contract.