Types of Business Insurance

March 26, 2018

 
 

Insurance can be a hard concept for some people to wrap their minds around, and all the jargon associated with it does not do much to help demystify insurance. This article will help you to understand what insurance is and the different types of insurance that exist as well as how they can be of benefit to you.

Definition of Insurance

The term insurance refers to the transfer of risk from the policy holder to the insurance company. It is an agreement between these two parties that in the event of loss or damage, the insurance company will bear the full or partial compensation.

Types of Insurance

There are different types of insurance. In this article we will cover insurance policies that protect a business. All in all we will highlight 7 types of business insurance policies including:

  • Property insurance
  • Fire insurance
  • Marine insurance
  • Personal or Life insurance
  • Social insurance
  • Guarantee insurance
  • Liability insurance

Property Insurance

Under this insurance policy, a person’s property is insured against a specific risk which might include marine perils, fire, damage of goods, theft of property etc.

Fire Insurance

Going by the name, a Fire insurance policy is meant to insure property from the risk of fire. In the event of a fire and any damage arising from it, an individual is guaranteed that their property, industry, or business will remain approximately in the same position.

Marine Insurance

This type of insurance offers protection against loss that is occasioned by marine perils. Marine perils might include:

  • Attacks by enemies
  • Collision with a ship or a rock
  • Destruction of the ship and cargo
  • Disappearance of the ship and cargo
  • Non-payment of freight

Personal or Life Insurance

Personal insurance refers to an insurance policy that insures human life against such risks as:

  • Death
  • Accident
  • Disease

Social Insurance

Social insurance is meant to provide protection to members of the society who are considered weak and vulnerable and yet cannot afford to pay insurance premiums.

This includes:

  • Disability benefits
  • Pension plans
  • Sickness insurance
  • Unemployment benefits
  • Industrial insurance

Guarantee Insurance

This insurance policy covers any loss that is occasioned by dishonesty, disloyalty, and disappearance on the part of a company’s employees or a second party. The second party has to be party to the Guarantee Insurance, that is, they must sign the contract with the insurance company providing the policy.

Liability Insurance

Liability insurance is any insurance policy that protects a business or individual in the event that they get taken to court and are held legally liable for issues such as:

  • Malpractice
  • Negligence
  • Injury

Many of the above mentioned insurance policies are covered under general insurance such as liability insurance, property insurance, and liability insurance.

Please note that both marine and fire insurance policies fall under property insurance.

In a world full of risks, there are numerous insurance companies out there that offer various insurance policies for your business. By using Compare A Quote, our insurance agents will help you find the best insurance policy available.

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