What is SMP Packages (Specialty and Nonstandard)?
SMP Packages, or Specialty and Nonstandard Multi-Peril insurance, are customized insurance solutions tailored to unique industries or high-risk operations that fall outside standard insurance markets. These packages bundle essential coverages such as general liability, property insurance, and business interruption, often with additional specialty protections based on industry-specific exposures.
These policies are designed for businesses and operators with complex risk profiles—those with high operational hazards, nontraditional setups, or specialized equipment. By consolidating multiple lines of coverage under one tailored policy, SMP Packages help streamline risk management and improve protection against insurable threats.
Who needs it
SMP Packages are ideal for businesses and contractors operating in niche markets or with nonstandard exposures. This includes specialty trade contractors, high-risk manufacturers, recreational clubs, training schools, and operators of unique facilities or equipment. For example, a welding contractor with job-site hazards and mobile equipment needs coverage beyond what a standard policy offers.
Organizations that require customized insurance due to frequent transportation risks, unusual liability exposures, or high-value tools and machinery can benefit from these packages.
What it typically covers
Coverage within an SMP Package may include:
- Commercial general liability – protection against third-party bodily injury or property damage
- Commercial property coverage – for buildings, tools, and equipment
- Business interruption – coverage for lost income after a covered loss
- Participant accident or event liability – often added for organizations or clubs with hosted activities
- Commercial auto exposure – where business vehicles are involved in operations
Some packages also allow endorsements for specialty risks, such as pollution liability or professional liability, depending on the industry needs.
Common exclusions or limitations
While SMP Packages are broad, they still have exclusions. Common limitations include:
- Intentional acts or fraudulent claims
- Uninsured subcontractors or third-party operators
- Wear and tear or equipment breakdown without proper maintenance
- Operations outside the scope defined in the underwriting
Reviewing exclusions with your insurance agent helps ensure your operations are fully covered without gaps.
Factors that influence cost
Premiums for SMP Packages vary based on several underwriting factors, including:
- Type of business and associated liability exposures
- Location, building construction, and property values
- Claims history and operational safety protocols
- Number of employees and annual revenue
Specialty coverage for high-risk operations or expensive equipment may also increase the cost.
Proof of insurance & compliance
Many clients, lenders, or regulatory agencies require proof of insurance before allowing work to begin. An SMP Package can provide certificates of insurance showing your coverage meets contractual or compliance requirements. This is especially important for contractors and vendors bidding on projects or working on client premises.
How to get a quote
To get an accurate quote, prepare details about your business operations, property values, past claims, and any special exposures. An experienced insurance agent can help tailor the right SMP Package for your needs. If you're unsure where to start, discuss with an agent who understands specialty and nonstandard risks.
For organizations like training schools and recreational clubs, you may also want to explore related options such as the Specialty Training Schools Package Insurance or the Non-Standard Specialty Trade Contractors Special Multi-Peril Insurance for more tailored solutions. Landscapers and groundskeeping operations may benefit from the Greenscape Insurance Plan.
Frequently Asked Questions
What does “nonstandard” mean in SMP Packages?
“Nonstandard” refers to businesses or risks that do not fit the guidelines of traditional insurance carriers and require specialized underwriting or policy terms.
Are SMP Packages only for contractors?
No. While contractors often need them, SMP Packages are also useful for unique organizations, recreational clubs, and small businesses with unusual exposures.
Can I add more coverage to my SMP policy later?
Yes, many SMP policies are flexible and allow endorsements to add coverage as your business grows or changes.
Is equipment breakdown included?
It may be included or offered as an optional endorsement. Check your policy details or ask your agent to confirm.
Do I need separate auto insurance if I have an SMP Package?
If your business operates vehicles, you’ll likely need a commercial auto policy or endorsement within your SMP. This depends on how your package is structured.
Still have questions? Talk to a local insurance expert.