TYPES OF INSURANCE POLICIES & COVERAGES (BUSINESS & PERSONAL)
Types Of Insurance Policies & Coverage
There are many types of insurance policies & coverage. Insurance is an effective way of risk management and is defined as an equitable transfer of the risk of a loss in exchange of a premium. Almost every measurable risk can be insured.
It’s unlikely that you’ll need every insurance product on this list, even if you could afford to but them all. But how do you know if you know enough about the insurance policies & coverage you need the most.
Below are some of the most common business and personal insurance policies & coverage you may need or buy in your lifetime.
List Of Insurance Products
Below is a list and definitions of some of the many types of insurance that are available:
Accidental Death & Dismemberment Insurance: This covers death and injury that results from accidents. Death that results from illness, suicide or natural reasons is not covered under this type of insurance.
ATV Insurance: Covers liability and also collision, comprehensive and underinsured driver coverage
Auto Insurance: Car insurance covers the risk involved in traffic accidents and liabilities that can result from accidents.
Boat Insurance: Covers a loss or damage to boats. It covers most watercraft with motors, including fishing boats, pontoon boats, paddle boats, leisure crafts and yachts.
Business Owners Policy: A BOP combines protection from all major property and liability risks into one convenient policy.
Casualty Insurance: Covers the liability that results from an accident. It may pay for the expenses of injuries to third parties, or the costs incurred in restoring the damages resulting from accident. Casualty insurance policies do not cover life, health and property losses.
Commercial Insurance: Covers businesses, their owners and their employees from liability and property damage claims.
Condo Insurance: Covers the interior walls, fixtures, and personal property inside a condominium.
Contents Insurance: It covers the loss or damage to the personal possessions of an individual while they are located in one’s home. The insurance might also cover the possessions kept in the exterior of one’s household, such as things kept in one’s garden area. It is generally purchased as part of a renters or home insurance policy.
Crime Insurance: Employee theft and offenses causing financial losses to a business are covered under crime insurance policies.
Critical Illness Insurance: Policyholders are insured in case of being afflicted by any of the diseases enlisted as critical in the policy. The policy may be structured to provide the insured individual with regular payments or a lump sum amount on being diagnosed for one of the critical illnesses.
Data Breach Insurance: Data breach insurance and cyber liability insurance is important because of how expensive data breaches are. They help to cover the costs of a data security breach with things like identity protection, public relations, legal fees and more.
Dental Insurance: Pays certain costs incurred on dental care.
Directors And Officers Liability Insurance: D&O insurance helps cover defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization’s board of directors and/or officers.
Disability Insurance: Disability insurance covers the insured individual’s earnings against the risk that a disability can make working impossible for him/her. Disability insurance policies are arrangements to secure one’s future in case the individual is unable to work and earn – either in the short or long term.
Earthquake Insurance: A type of property insurance, which covers the risks for frequently occurring earthquakes. It insures the damage caused to property as a result of earthquakes. It is widely used in California.
Employment Practices Liabilility Insurance: Employment practices liability insurance (EPLI), provides employers coverage against claims made by employees alleging discrimination (based on sex, race, age or disability, etc), wrongful termination, harassment and other employment-related issues, such as failure to promote.
Flood Insurance: Covers the damages to property that result from floods. The National Flood Insurance Program defines a flood as a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.
General Liability Insurance: Covers businesses against third-party liability claims for bodily injury and property damage arising out of premises, operations, products, and completed operations; and advertising and personal injury liability.
Group Insurance: Covers the risks from a group of people. Group insurance policies are generally purchased for a group of members of a society or a group of professionals in an organization. It is less expensive than individual insurance policies.
Health Insurance: Health insurance policies cover for medical and surgical expenses for various types of illness, injures and diseases that threaten human life.
Homeowners Insurance: Covers losses and damages to an individual’s house and to its contents. Homeowner’s insurance also provides liability coverage against accidents on the property.
Inland Marine Insurance: Also know as jewelry & valuables insurance and personal articles floater, protects certain movable property of an individual – like jewelry etc.
Keyman Insurance: Key man insurance policy is the one purchased by a businessman to secure the potential losses of his resources and cover the incapacity or death of a key employee.
Landlord Insurance: Covers a property owner from financial losses connected with rental properties. It covers the building, with the option of insuring any contents that belong to the landlord that are inside and liability from injuries.
Liability Insurance: An insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such like injury or negligence.
Life Insurance: Protects against financial loss that would result from the premature death of an insured. Life insurance policies provide a monetary benefit to the beneficiaries of the deceased. So if the primary wage earner died – where would the money come from to eat, pay the mortgage, send the kids to college, etc?
Long-Term Care Insurance: Provides the insured care and covers medical and social services meant to support the needs of people living with chronic health problems that affect their ability to perform everyday activities (activates of daily living), which are not covered by health insurance policies or Medicare.
Marine Insurance: Covers the losses for damage to ships, terminals and any property that is transported through cargo.
Medicaid: Is a health care program that provides free or low-cost health coverage to some low-income people, families and children, pregnant women, the elderly, and people with disabilities for help in paying for long-term medical and custodial care costs.
Medicare: Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.
Medigap: It comprises private supplemental health insurance plans and covers the expenses beyond those offered by Medicare.
Mortgage Life Insurance: This covers repayment mortgage, referring to a mortgage in which monthly repayments imply the repayment of the capital along with the accumulated interest.
Motorcycle Insurance: Provides financial protection in the event of a motorcycle accident, loss, theft or damage.
No-Fault Insurance: Covers the losses irrespective of the party responsible or fault for the losses.
Pet Insurance: Cover the costs incurred in treating a pet’s illness. Some of the pet insurance policies also cover the losses borne by the pet owner in event of the death or the theft of the pet.
Political Risk Insurance: Cover the political risks to businesses. Political violence like riots, terrorism and war and governmental arrogation are classified as political risks to business.
Professional Liability Insurance: Also know as errors and omissions insurance (E&O), it secures the policyholder against losses incurred as a result of a negligent act in the policyholder’s business. E&O insurance also covers the loss that can result from claims for the policyholder’s breach of duty and also indemnifies the policyholder against the policyholder’s civil liability.
Property Insurance: It indemnifies the policyholder against the risks to his/her property and provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft. Property insurance can include homeowners insurance, renters insurance, flood insurance and earthquake insurance and more.
Reinsurance: Reinsurance is rather a means by which insurance companies safeguard themselves from the risk of losses with other insurance companies. Reinsurers provide the insurance companies with insurance.
Renters Insurance: A form of property insurance that provides coverage for a policy holder’s belongings and liability within a rental property.
Self-Insurance: A form of risk management wherein a certain amount of money is set aside to pay claims for losses in future.
Self-Funded Health Insurance: Refers to a self-insurance that is provided by an employer to his/her employees in assumption of a risk in paying their claims for benefits.
Snowmobile Insurance: Provides coverage for personal injury, damages to the snowmobile, and your legal liability in the event that you are responsible for another person’s injuries or property damage.
Terrorism Insurance: The potential losses that can be caused as a result of terrorist activities are covered under terrorism insurance.
Title Insurance: Indemnifies a person against financial losses that may result from defects in title to real property. The losses incurred from invalid mortgages are also covered under title insurance policies. Title insurance is a type of insurance that protects the owner or lender.
Travel Insurance: Long journeys are accompanied by a certain amount of risk. Cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling worldwide.
Umbrella Insurance: Is extra liability insurance. It sits above the limits of your homeowners, auto, and boat and is designed to help protect you from major claims and lawsuits that exceed your underlying limits.
Vision Insurance: Covers the expenses one may have incur for glasses, eye treatments and services given by ophthalmologists.
Workers Compensation Insurance: Provides employees with monetary compensation if they are injured at the workplace. Workers comp can be given in the form of reimbursement of medical bills, weekly wages or benefits to the employee’s dependents.