PERSONAL LINE INSURANCE

The term “personal insurance” refers to any type of insurance that covers an individual against loss caused by death, injury, or property loss. These insurance lines generally protect people and their families against losses they cannot afford to cover on their own. Personal insurance allows you to do things like drive a car and own a home without risking financial ruin.

KEY POINTS:

• Personal insurance covers individuals against losses due to death, injury or property loss.
• Personal insurance allows you to do things like drive a car and own a home without risking financial ruin.
• Coverage mainly depends on the amount of premium an individual is willing to pay.

Personal insurance is insurance, purchased by an individual to cover themselves and their families. These policies protect against various types of personal risks that could lead to potentially devastating financial losses due to fire, theft, natural disasters, death, accidents, lawsuits, and illness.
Personal insurance includes products such as homeowners insurance, flood insurance, earthquake insurance, renters insurance, auto insurance, life insurance, disability insurance, umbrella insurance, and health insurance. Certain types of personal insurance, such as motor vehicle liability insurance, are often required by law.
For example, required minimum levels of motor vehicle liability insurance are common and may vary by jurisdiction. Other types of personal insurance, such as comprehensive and collision car insurance and home insurance, may be required by lenders when the property is used as collateral for the loan.
The amount of insurance coverage you can get generally depends on how much an individual is willing to pay in premiums – the more someone is willing to pay, the more insurance they can get. Individuals can usually customize the coverage and deductibles of each policy to strike the right balance between the amount of coverage and the cost of premiums. Premium amounts also vary depending on the region where you live.
Personal insurance coverage will not cover every risk an individual may face, but it can dramatically reduce their liability for damages and the dollar amount they may have to pay out of pocket to correct an unfortunate situation.

COMMERCIAL LINE INSURANCE

Commercial lines insurance includes all the property and casualty (P&C) insurance products for businesses. Commercial circuit insurance helps keep the economy running smoothly by protecting businesses from potential losses they could not afford to cover on their own and allowing businesses to operate where it might otherwise be too risky.

KEY POINTS:

• Property-casualty insurance can be divided into two main categories: commercial insurance and personal insurance.
• Commercial lines represent about half of the U.S. property insurance industry and include many types of business insurance products.
• Risks and perils covered by business lines include, for example, negligent care insurance, professional liability, builder’s risk, crop insurance, and many other industry-specific insurances.

Commercial lines insurance includes products such as commercial auto insurance, workers’ compensation insurance, federal flood insurance, aircraft insurance, marine insurance, and medical malpractice insurance. Commercial lines of insurance protect businesses from potentially devastating financial losses caused by accidents, lawsuits, natural disasters, and other adverse events. The coverage and premium costs vary depending on the business type, size, and location.
The top five issuers of commercial lines, measured by premiums written, were American International Group (AIG), Travelers, Liberty Mutual, Zurich Insurance Group, and ACE Ltd.
Commercial lines aren’t just for big corporations. A small home business may also require more than one commercial line, as homeowners insurance only provides limited to no coverage for the business activities.
For example, a home business may need commercial auto insurance for the company delivery vehicle, workers’ compensation insurance for the employee who drives the vehicle, property insurance to cover business merchandise stolen from the home or vehicle, and liability insurance to protect against claims by any client who claims is damaged by the company’s product.

TYPES OF BUSINESS SERIES INSURANCE

There are several different types of commercial circuit insurance, with many types of coverage tailored to a specific industry or peril specific to that industry. Here are just a few examples:

• Debris removal insurance: This insurance covers the cost of removing debris after a catastrophic event, such as a fire that burns down a building. Before rebuilding, it is necessary to remove the remains of the old building. Property insurance alone usually does not cover the cost of debris removal.
• Building Risk Insurance: This cover insures buildings during their construction.
• Glass insurance: It covers broken windows in a commercial complex.
• Inland Marine Insurance: Covers property in transit and property of others on your premises. For example, this insurance would cover fire damage to customers’ clothing caused by a dry cleaner’s fire.
• Business interruption insurance: This insurance covers lost income and expenses due to damage or loss of property. For example, if a fire forces you to close your doors for two months, this insurance will reimburse you for the salaries, taxes, rents, and net profits you would have earned during the two months.
• Demolition insurance: used to cover the cost of demolishing a building that is damaged by a peril such as fire or storm. Sometimes it may require that a damaged building be demolished rather than repaired. Demolition insurance covers the costs of tearing down the undamaged parts of the damaged structure.
• Hail insurance: It provides coverage against the damage caused by the destruction caused by hail and fire. Purchased by farmers, it is intended to protect agricultural products while they are still in the field and have yet to be harvested. It protects the farmers whose livelihood is at the mercy of sudden weather events.

BUSINESS ACTIVITIES (LOB) AND THEIR TYPES Property and Casualty (P&C)

LINE OF BUSINESS: This is a general classification of business used in the insurance industry, such as fire, commercial, personal, automobile, or residential. Property and casualty insurance companies currently make the most money from the auto insurance business.
Property and casualty insurance is a category of insurance that includes policies designed to protect businesses against a wide variety of accidents, threats, and losses involving property and the environment. Specifically, the business property insurance portion of these types of policies helps cover the buildings and property you own,