While a package policy is suitable for many businesses, there are a few scenarios in which commercial monoline property insurance is appropriate. Here are some instances wherein this type of policy may be needed.
If a business is particularly large, an insurer might not want to offer coverage for everything because a single claim could be too expensive for the company to cover. A business owner may need to purchase individual monoline policies from different insurers in order to get the coverage they need.
Insurers use statistical averages in order to determine rates when underwriting policies. If a business is highly unique and there are no statistical averages available, a business owner may need to turn to an insurance agency that specializes in a particular field. This specialized insurer will likely offer a monoline policy.
If your business is in a particularly risky field, such as manufacturing medical devices, most insurers may not be willing to offer coverage under a package policy. In this case, a business owner will need to purchase a single policy to cover the risk.
If your business is unique, particularly large, or has a high-risk exposure, it may be necessary to purchase commercial monoline property insurance so their liability is sufficiently covered.