What Is Commercial Lines Insurance?

Commercial lines insurance is a subset of property and casualty insurance. Where life, health, disability and long-term care insurance insure people, and not things, these lines of insurance are called "personal lines." Property and casualty covers the risk of loss or damage to things, or liability that may arise from an accident or negligence. Commercial lines are lines of insurance that cover businesses, rather than property belonging to an individual.

Workers Compensation

Workers compensation insurance ensures that workers injured on the job have access to medical care and rehabilitative services. Most jurisdictions require that employers maintain workers' compensation coverage. This coverage protects the business as well: If the medical issue can be resolved and the accident or injury victim made whole through workers compensation insurance, there may be no need to sue the employer.

Commercial Multiple Peril

Commercial Multiple Peril coverage provides general liability coverage for businesses against all manner of potential risks. Contracts vary by the issuing company and the jurisdiction, but multiple peril generally covers businesses against the risk of employee theft, crime, automobile accidents, injury, boiler and machinery failure, and other similar items.

Commercial Auto Insurance

Business owners who own or lease fleets of vehicles have a compelling interest in maintaining business insurance coverage for all their vehicles and drivers. These policies provide broad coverage against business owners for accidental damage and liability. Otherwise, a single driver involved in one wreck could endanger the entire business -- and his fellow employees' jobs along with it.

Fire And Flood

These coverages provide protection to business owners against loss due to these causes. Flood insurance, especially, is frequently omitted from general property insurance. Generally, you must purchase flood insurance separately from your other coverage. Check to see if your business property or assets resides in a flood plain before purchasing.

Other Commercial Lines

Other commercial lines of insurance include marine insurance for shipping, errors and omissions coverage, medical malpractice, umbrella liability coverage and crop insurance for farmers. In addition, a large reinsurance market covers commercial insurers against extremely large risks.