Common Types of Business Insurance
Business Insurance Policies
Written by Jason Gordon
Updated at June 21st, 2023
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Key Insurance Terminology
What are some Common Types of Business Insurance?
Several common types of business insurance policy are discussed below.
Next Article: Duties of an Insurer Back to: INSURANCE LAW
What is Business Liability Insurance?
Business liability insurance can have any number of property and liability protections. The most common form of business liability insurance is a comprehensive general liability (CGL) policy. These policies will insure any number of risks commonly faced by businesses, such as premises liability, product liability, professional malpractice, negligence, environmental liability, etc.
Note: It is common for insurers to require separate policies for product liability and professional malpractice liability coverage.
What is Professional Liability Insurance?
Professional liability insurance, often called malpractice insurance, protects the insured from losses incurred as a result of a specific type of negligent professional practice. A specific type of professional liability insurance is director & officer liability insurance, which is purchased by a business to indemnify its officers and directors from losses suffered in the performance of their business duties.
Others Common Types of Business Insurance
Other common types of insurance include: crime, flood, pollution, mortgage insurance, title insurance, workers compensation, unemployment, cyber privacy, etc.
An individual or business may purchase any of the above-referenced types of insurance, as well as many other common types of insurance. Some of the types of insurance may be required by law or by professional trade industry in a given jurisdiction.
Discussion
What types of professional practitioners do or are generally required to purchase these types of policy? Why do you think companies purchase D&O insurance to cover its officers and directors? Why do you think many businesses purchase these types of policies? Can you think of a situation where a business would not benefit from such a policy?
Related Topics
- Insurance Law (Intro)
- What is insurance?
- Captive Agent
- Independent Agent
- Captive Insurance Company
- Underwriter
- Combined Ratio
- Claims Adjuster
- Capital at Risk
- Assigned Risk
- Contingency
- Incurred But Not Reported
- Actuary
- Qualified Actuary
- Cession (Re-Insurance)
- Burning Cost Ratio
- What is an insurance contract?
- Accidental Means
- Anti-stacking Provisions
- What is an insurable interest?
- What are the common categorizations of insurance?
- National Association of Insurance Commissioners
- Insurance Regulatory Information System
- American Academy of Actuaries Definition
- American Association of Insurance Services Definition
- American Council of Life Insurance Definition
- American Insurance Association Definition
- American Risk and Insurance Association Definition
- LLoyd's of London
- Associate in Insurance Services (AIS) Definition
- Associate in Loss Control Management Definition
- Associate in Marine Insurance Management Definition
- Associate in Personal Insurance Definition
- Associate in Reinsurance (ARe) Definition
- Associate in Risk Management Definition
- Associate in Commercial Underwriting Definition
- Associate in Insurance Accounting and Finance Definition
- Associate in Surplus Lines Insurance Definition
- Chartered Insurance Professional Definition
- Chartered Life Underwriter Definition
- Chartered Property Casualty Underwriter Definition
- Vehicle insurancePrivate Passenger Auto Insurance Risk Profile
- Underinsured Motorist Coverage
- Uninsured Motorist Coverage
- Omnibus Clause
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Health insurance
- Health Maintenance Organization
- Capitated Contract
- Point of Service Plan
- Children's Health Insurance Program
- Disability Insurance?
- Credit Disability Insurance
- Life Insurance?
- Cash Surrender Value
- Absolute Beneficiary
- Acceleration Life Insurance
- Accelerated Benefit
- Accelerated Option
- Accelerative Endowment
- Charitable Gift Life Insurance
- Incontestability Clause
- Waterfall Concept
- Annuitization
- Assumed Interest Rate
- Clean Sheeting
- Hazard Insurance
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- Participating Community (Flood Insurance)
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- Commercial General Liability
- Liability Risk Retention Act
- Excess Insurance and Umbrella Insurance Policy
- Business Interruption Insurance
- Key Person Insurance Definition
- Own-Occupation Policy
- Self-Funded Health Insurance Plan
- Basket Retention Policy
- Commercial Blanket Bond
- Alternative Risk Transfer Market Definition
- Commercial Property Casualty Market Index Survey
- What are the primary obligations of the insurer?
- Earned Premium
- Reservation of Rights Letter
- Subrogation
- Collateral Source Rule
- What are the primary obligations of the insured?
- Insurance Premium
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Cooperation Clause
- Coinsurance
- Co-Pay
- Affidavit of Loss
- What is the general structure of an insurance contract?
- Ambiguity Principle
- Accommodation Line
- What are the common disputed provisions in an insurance contract?
- Absolute Exclusion
- All Risks Clause
- What is required for the termination of an insurance contract?
- Risk Management
- Professional Risk Manager
- Associate in Management (AIM)
- Financial Risk Manager
- Forecasting (Business)
- Objective Probability
- Unconditional Probability
- Enterprise Risk Management (ERM)
- Operational Risk
- Business Recovery Risk
- Political Risk
- Asset Protection
- Performance Bond
- Barra Risk Factor Analysis Definition
- Above Ground Risk (Mining Industry)
- Bumbershoot Policy (Maritime)
- Abandonment Clause (Boat or Vessel)
- Bobtail Liability Insurance (Trucking Industry)
- Anti-Indemnity Statute (Construction)