by D. Victor

Created on: July 24, 2010

Property and casualty insurance are sometimes grouped under one policy or the terms are used interchangeably (somewhat inappropriately). Commercial property insurance involves all forms of coverage that protect premises, stock in trade, fixtures & fittings and plant & machinery ; this coverage extends to such peripheral property as signage and goods in-transit.

It also includes specialised forms of insurance coverage like fire insurance and explosion insurance. Commercial lines property insurance can protect against a variety of perils (natural and social perils for instance). Businesses have the option of insuring against certain perils in a named-perils policy or have an all-risk policy (with limited exclusions).

Casualty insurance protects business revenue and business operations (continuity of operations specifically). Whereas property insurance is concerned with assets, casualty insurance deals with anything that affects revenue. Sometimes the two are related – hence they sometime come under an amalgamated Property & Casualty policy or have a degree of overlap.

Casualty insurance can insure tangibles that affect business operations like damage to glass, burglary, and even vandalism. Its coverage can also extend to identity theft, employee theft, surety bonds (for contract default), floods, terrorism and loss of business revenue as a result of political instability.

Commercial auto insurance and marine insurance are considered as features of property insurance, but are typically highly specialized forms of coverage that can be purchased on a separate plan. Vehicles used for business purposes (and are registered under the business name) can be insured under this policy. The coverage provided is similar to personal auto insurance but can include special terms for highly specialized vehicles as well.

Marine insurance, which is broad in scope, covers damage to marine equipment (ships, boats and terminals – among others), shipment of business goods and even some personal items. Just as commercial property insurance has specialized policies, so does marine coverage. It can cover the following risks:

i) Cargo

ii) Onshore and Offshore exposed property

iii) Marine Casualty (loss of revenue of marine operations)

iv) Marine Liability

For small business owners, specialized policies may not be feasible. For this reason, there exists a Business Owner's Policy. This general business insurance policy is designed for small businesses and offers limited coverage against certain a broad spectrum of perils and liabilities. Apart from small businesses, the needs of a home-based business owner may be different and certain aspects of a business insurance policy may not be applicable (especially as it relates to premises).

Learn more about this author, D. Victor.
Click here to send this author comments or questions.