Commercial Insurance
Insurance policies designed to protect businesses from financial losses due to property damage, liability, and operational risks.
What is Commercial Insurance?
Commercial insurance encompasses a broad range of policies designed to protect businesses, their assets, employees, and third parties from financial loss. Major lines include commercial property (covering buildings and equipment), commercial general liability (bodily injury and property damage claims), commercial auto, workers' compensation, business interruption, directors and officers (D&O) liability, errors and omissions (E&O) professional liability, and cyber liability. Businesses typically purchase a Business Owners Policy (BOP) that bundles property and liability coverage, then add specialized lines as needed based on industry, size, and risk profile.
Example
A small consulting firm purchases a Business Owners Policy combining $500,000 in commercial property coverage with $1 million in general liability coverage, then adds an E&O policy for $1 million to protect against claims of professional negligence — reflecting the firm's primary risk exposure from advice rather than physical assets.
Source: National Association of Insurance Commissioners — Commercial Lines