What type of policy typically includes different coverage types under one contract?

A package policy is designed to combine multiple types of coverage within a single contract, making it a convenient option for policyholders who want various forms of protection under one insurance agreement. This type of policy often includes different areas of coverage such as property, liability, and sometimes additional endorsements tailored to the insured's specific needs, all bundled together.

The structure of a package policy allows for streamlined management of insurance needs, potentially leading to cost savings and simplified claims processes. For instance, businesses frequently utilize package policies to ensure they have adequate coverage for various risks, effectively safeguarding themselves from a range of liabilities through one policy rather than managing several separate contracts. This is in contrast to a basic or comprehensive policy, which typically focuses on a singular type of coverage or a limited array of options, and a single-line policy that addresses only one type of insurance coverage.