Any risk that can be quantified can potentially be insured. Among the different types of commercially available insurance are:



Types of insurance--Automobile insurance

known in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself.

Throughout most of the United States an auto insurance policy is required to legally operate a motor vehicle on public roads.

In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no fault system, which reduces or eliminates the ability to sue for compensation but provides automatic eligibility for benefits.

Types of insurance--Aviation insurance

insures against hull, spares, deductible, hull war and liability risks.

Types of insurance--Boiler insurance

(also known as boiler and machinery insurance or equipment breakdown insurance) insures against accidental physical damage to equipment or machinery.

Builder's risk insurance insures against the risk of physical loss or damage to property during construction.

Builder's risk insurance is typically written on an "all risk" basis covering damage due to any cause (including the negligence of the insured) not otherwise expressly excluded.

Types of insurance--Casualty insurance

insures against accidents, not necessarily tied to any specific property.

Types of insurance--Credit insurance

repays some or all of a loan back when certain things happen to the borrower such as unemployment, disability, or death.

Types of insurance--Crime insurance

insures the policyholder against losses arising from the criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising from theft or embezzlement.

Types of insurance--Crop insurance

Farmers use crop insurance to reduce or manage various risks associated with growing crops.

Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease, for instance."

Types of insurance--Defense Base Act

Workers' compensation or DBA Insurance provides coverage for civilian workers hired by the government to perform contracts outside the US and Canada.

DBA is required for all US citizens, US residents, US Green Card holders, and all employees or subcontractors hired on overseas government contracts.

Depending on the country, Foreign Nationals must also be covered under DBA.

This coverage typically includes expenses related to medical treatment and loss of wages, as well as disability and death benefits.

Types of insurance--Directors and officers liability insurance

protects an organization (usually a corporation) from costs associated with litigation resulting from mistakes incurred by directors and officers for which they are liable.

In the industry, it is usually called "D&O" for short.

Types of insurance--Expatriate insurance

provides individuals and organizations operating outside of their home country with protection for automobiles, property, health, liability and business pursuits.

Types of insurance--Financial loss insurance

protects individuals and companies against various financial risks.

For example, a business might purchase cover to protect it from loss of sales if a fire in a factory prevented it from carrying out its business for a time.

Insurance might also cover the failure of a creditor to pay money it owes to the insured. This type of insurance is frequently referred to as "business interruption insurance."

Fidelity bonds and surety bonds are included in this category, although these products provide a benefit to a third party (the "obligee") in the event the insured party (usually referred to as the "obligor") fails to perform its obligations under a contract with the obligee.

Types of insurance--Health insurance policies

will often cover the cost of private medical treatments if the National Health Service in the UK (NHS) or other publicly-funded health programs do not pay for them.

It will often result in quicker health care where better facilities are available.

Types of insurance--Disability insurance policies

provide financial support in the event the policyholder is unable to work because of disabling illness or injury.

It provides monthly support to help pay such obligations as mortgages and credit cards.

Types of insurance--Liability insurance

covers legal claims against the insured.

For example, a homeowner's insurance policy will normally include liability coverage which will protect the insured in the event of a claim brought by someone who slips and falls on the property, and brings a lawsuit for her injuries.

Similarly, a doctor may purchase liability insurance to cover any legal claims against him if his negligence (carelessness) in treating a patient caused the patient injury and monetary harm.

The protection offered by a liability insurance policy is two fold:

-a legal defense in the event of a lawsuit commenced against the policyholder

-indemnification (payment on behalf of the insured) with respect to a settlement or court verdict.

Liability policies typically cover only the negligence of the insured, and will not apply to results of willful or intentional acts by the insured.

Types of insurance--Marine cargo insurance

covers physical loss or damage to property while in transit via sea or inland waterways.

Marine insurance typically refers to coverage of physical damage to the transporting vessel.

Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss.

Types of insurance--Purchase insurance

is aimed at providing protection on the products people purchase.

Purchase insurance can cover individual purchase protection, warranties, guarantees, care plans and even mobile phone insurance.

Such insurance is normally very limited in the scope of problems that are covered by the policy.

Types of insurance--Life insurance

provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for burial, funeral and other final expenses.

Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.

Types of insurance--Annuities

provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires.

Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources.

In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance.

Types of insurance--Total permanent disability insurance

provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.

Types of insurance--Locked funds insurance

is a little-known hybrid insurance policy jointly issued by governments and banks.

It is used to protect public funds from tamper by unauthorized parties.

In special cases, a government may authorise its use in protecting semi-private funds which are liable to tamper.

The terms of this type of insurance are usually very strict.

Therefore it is used only in extreme cases where maximum security of funds is required.

Types of insurance--Marine insurance

covers the loss or damage of goods at sea.

Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.

Types of insurance--Nuclear incident insurance

covers damages resulting from an incident involving radio activated materials and is generally arranged at the national level.

(For the United States, see the Price-Anderson Nuclear Industries Indemnity Act.)

Types of insurance--Environmental liability insurance

protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants.

Types of insurance--Pet insurance

insures pets against accidents and illnesses - some companies cover routine/wellness care and burial, as well.

Types of insurance--Political risk insurance

can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss.

Types of insurance--Professional indemnity insurance

is normally a mandatory requirement for professional practitioners such as architects, lawyers, doctors and accountants to provide insurance cover against potential negligence claims.

Non-licensed professionals may also purchase malpractice insurance, in which case it is commonly called errors and omissions insurance and covers a service provider for claims made against him that arise out of the performance of specified professional services.

For instance, a web site designer can obtain E&O insurance to cover her for certain claims made by third parties that arise out of negligent performance of web site development services.

Types of insurance--Property insurance

provides protection against risks to property, such as fire, theft or weather damage.

This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.

Types of insurance--Terrorism insurance

provides protection against any loss or damage caused by terrorist activities.

Types of insurance--Title insurance

provides a guarantee that title to real property is vested in the purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually issued in conjunction with a search of the public records performed at the time of a real estate transaction.

Types of insurance--Travel insurance

is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, lost of personal belongings, travel delay, personal liabilities, etc.

Types of insurance--Workers' compensation insurance

replaces all or part of a worker's wages lost and accompanying medical expense incurred because of a job-related injury.

A single policy may cover risks in one or more of the categories set forth above. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident). A homeowner's insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of health insurance for medical expenses of guests who are injured on the owner's property.

Potential sources of risk that may give rise to claims are known as "perils". Examples of perils might be fire, theft, earthquake, and hurricane, among many others. An insurance policy will set out in detail which perils are covered by the policy and which are not.

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