Commercial Lines Insurance
Commercial lines insurance includes property and casualty insurance products for businesses. Commercial lines insurance include products, such as commercial auto insurance, workers compensation insurance, federal flood insurance, aircraft insurance, ocean marine insurance, and medical malpractice insurance. For example, a home business might need commercial auto insurance for a company-owned delivery vehicle, workers compensation insurance for the employee who drives the vehicle, property insurance to cover business goods stolen from the home or vehicle and liability insurance to protect against claims by any client who claims the business’s product harmed them. Risks and hazards covered under commercial lines include, for example, malpractice insurance, professional liability, builder's risk, crop insurance, and many other industry-specific coverages. Commercial lines accounts for about half of the U.S. property casualty insurance industry, and includes the many kinds of insurance products designed for businesses.
What Is Commercial Lines Insurance?
Commercial lines insurance includes property and casualty insurance products for businesses. Commercial lines Insurance helps keep the economy running smoothly by protecting businesses from potential losses they couldn’t afford to cover on their own, which allows businesses to operate when it might otherwise be too risky to do so.
Commercial policies may be contrasted with personal lines insurance.
Understanding Commercial Lines Insurance
Commercial lines insurance include products, such as commercial auto insurance, workers compensation insurance, federal flood insurance, aircraft insurance, ocean marine insurance, and medical malpractice insurance. Commercial lines protect businesses against potentially devastating financial losses caused by accidents, lawsuits, natural disasters, and other adverse events. Available coverages and premium costs vary by business type, size, and location. In 2013, the five largest issuers of commercial lines, as measured by the amount of premiums written, were American International Group (AIG), Travelers, Liberty Mutual, Zurich Insurance Group and ACE Ltd. None of these companies had an especially large market share.
While all commercial lines share some similarities, each policy will be tailored for the type of business being covered and the client’s unique needs. Suppose a structural engineering firm needs professional liability insurance. An insurance policy could protect the company against claims of negligence in creating a building’s plans, performing inspections, and supervising construction, as well as against claims of failure to render professional services. The firm could purchase general coverage as well as specific, additional coverage for each project, plus coverage for punitive damages.
Other Considerations
Commercial lines aren’t just for large corporations. Even a small, home-based business might need one or more commercial lines because homeowners insurance provides limited or no insurance for business activities. For example, a home business might need commercial auto insurance for a company-owned delivery vehicle, workers compensation insurance for the employee who drives the vehicle, property insurance to cover business goods stolen from the home or vehicle and liability insurance to protect against claims by any client who claims the business’s product harmed them.
Types of Commercial Lines Insurance
There are several different types of commercial lines insurance, with many policy types tailored to a specific industry or industry-specific hazard. Here are just a few examples:
Related terms:
Accounting
Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business to oversight agencies, regulators, and the IRS. read more
Business Insurance
Business insurance coverage is purchased by firms or enterprises in order to protect from potential hazards or harms. read more
Business Interruption Insurance
Business interruption insurance is a form of insurance coverage that replaces business income lost as a result of a business interruption event. read more
Business Owner Policy – BOP
A business owner policy (BOP) combines protection from all major property and liability risks into one package. They typically contain business interruption insurance, property insurance, and liability protection. read more
Commercial Property Insurance
Commercial property insurance is used to cover any type of commercial property against such perils as fire, theft, and natural disaster. read more
Crop-Hail Insurance
Crop-hail insurance is a type of insurance that provides coverage for agricultural products damaged by hail and fire. read more
Debris Removal Insurance
Debris removal insurance is a property insurance policy section providing reimbursement for clean-up costs associated with damage to property. read more
Demolition Insurance
Demolition insurance is used to cover the costs of demolishing a building that is damaged by a peril, such as a fire or storm. read more
Flood Insurance
Flood insurance is a type of property coverage that protects homeowners from water damage to the structure and/or contents of their property. read more
Liability Insurance
Liability insurance provides the insured party with protection against claims resulting from injuries and damage to people and/or property. read more