Types of Insurance Coverage

Summary

The major categories of insurance coverage, including property, casualty, life, health, and liability insurance.

Overview

Insurance is classified by the type of risk covered. Property insurance protects against loss or damage to tangible property, including fire, theft, and natural disasters. Casualty insurance covers liability for injuries to others or damage to their property. Life insurance pays a benefit upon the insured’s death. Health insurance covers medical expenses. Each type has distinct regulatory frameworks, policy forms, and interpretive principles.

Liability Insurance

Liability insurance protects the insured against claims by third parties for bodily injury or property damage. Commercial general liability (CGL) policies provide broad coverage for business risks. Professional liability (malpractice) insurance covers claims against professionals for negligence. Directors and officers (D&O) liability insurance protects corporate leaders. The insurer typically has both a duty to defend (provide legal representation) and a duty to indemnify (pay settlements and judgments) subject to policy limits.