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Insurance Glossary
Business Insurance Guide

Protect Your Business with the Right Insurance

Comprehensive guide to commercial insurance. Understand coverage options and terminology to make informed decisions about protecting your business.

58+
Business Insurance Terms
15
Industry-Specific Policies
100%
Free Resources

Why Business Insurance Matters

Protect your investment, employees, and future with comprehensive commercial insurance coverage

Comprehensive Protection

Protect your business from liability, property damage, cyber threats, and employee-related risks

Business Continuity

Ensure your operations continue even after unexpected events with business interruption coverage

Industry-Specific Solutions

Tailored coverage for your specific industry, from restaurants to tech companies to contractors

Essential Business Insurance Policies

Most businesses need these core coverages to protect against common risks

General Liability
Protects against third-party injury and property damage claims
Workers' Compensation
Required coverage for employee injuries and illnesses
Professional Liability
Covers errors, omissions, and negligence in professional services
Commercial Property
Protects buildings, equipment, and inventory from damage
Cyber Liability
Essential protection against data breaches and cyberattacks
Business Interruption
Covers lost income when operations are suspended

Complete Business Insurance Glossary

Browse all 58 commercial insurance terms and definitions

Industry-Specific Insurance

Restaurant Insurance
Specialized insurance package for restaurants and food service businesses, typically including general liability, property coverage, liquor liability, and food contamination coverage.
Contractor Insurance
Comprehensive coverage for construction contractors including general liability, workers' compensation, tools and equipment coverage, and professional liability for design-build projects.
Technology Errors and Omissions
Specialized professional liability insurance for technology companies, covering claims arising from software failures, data loss, system downtime, or failure to deliver promised services.
Retail Insurance
Insurance coverage designed for retail businesses, including property coverage for inventory and fixtures, general liability, business interruption, and employee dishonesty coverage.
Medical Malpractice Insurance
Professional liability coverage for healthcare providers protecting against claims of medical negligence, errors in diagnosis or treatment, and failure to obtain informed consent.
Legal Malpractice Insurance
Professional liability insurance for attorneys and law firms covering claims of negligence, missed deadlines, conflicts of interest, or errors in legal advice.
Salon and Spa Insurance
Specialized coverage for beauty and wellness businesses including general liability, professional liability for services, property coverage, and product liability.
Real Estate Errors and Omissions
Professional liability insurance for real estate agents and brokers covering claims of negligence, misrepresentation, failure to disclose, or errors in transactions.
Trucking Insurance
Specialized commercial auto insurance for trucking companies including liability coverage, physical damage, cargo insurance, and non-trucking liability for owner-operators.
Janitorial Insurance
Coverage for cleaning and janitorial services including general liability, workers' compensation, commercial auto for service vehicles, and bonding for employee honesty.
Landscaping Insurance
Insurance for landscaping businesses covering general liability, workers' compensation, commercial auto, inland marine for equipment, and pollution liability for pesticide use.
Hospitality Insurance
Comprehensive coverage for hotels, motels, and lodging businesses including property, general liability, liquor liability, employment practices liability, and business interruption.
Daycare Insurance
Specialized coverage for childcare facilities including general liability, abuse and molestation coverage, property insurance, and professional liability for educational services.
Fitness Center Insurance
Coverage for gyms and fitness facilities including general liability, professional liability for trainers, property coverage for equipment, and sexual abuse and molestation coverage.
Event Insurance
Short-term coverage for special events including general liability, liquor liability, event cancellation, and property coverage for rented equipment and venues.

General Commercial Insurance

Business Interruption Insurance
Coverage that compensates a business for lost income during periods when operations are suspended due to covered perils such as fire, natural disaster, or other insured events.
Commercial General Liability
Insurance that protects businesses against claims of bodily injury, property damage, personal injury, and advertising injury that occur during normal business operations.
Workers' Compensation Insurance
Required insurance that provides medical benefits and wage replacement to employees who are injured or become ill in the course of employment.
Professional Liability Insurance
Also known as Errors and Omissions (E&O) insurance, this coverage protects professionals against claims of negligence, mistakes, or failure to perform professional duties.
Commercial Property Insurance
Insurance that covers buildings, equipment, inventory, and other physical assets owned or used by a business against damage from fire, theft, vandalism, and other covered perils.
Cyber Liability Insurance
Coverage that protects businesses against losses from data breaches, cyberattacks, network security failures, and privacy violations.
Business Owners Policy
A bundled insurance package (BOP) that combines commercial property insurance, general liability coverage, and business interruption insurance at a discounted rate for small to medium-sized businesses.
Directors and Officers Insurance
Liability insurance that protects the personal assets of corporate directors and officers if they are sued for alleged wrongful acts in managing a company.
Employment Practices Liability Insurance
Coverage that protects businesses against claims by employees alleging discrimination, wrongful termination, harassment, or other employment-related issues.
Product Liability Insurance
Coverage that protects manufacturers, distributors, and retailers against claims of injury or damage caused by defective products.
Commercial Auto Insurance
Insurance coverage for vehicles owned or used by a business, providing liability, collision, and comprehensive coverage for business vehicles and drivers.
Key Person Insurance
Life or disability insurance purchased by a business on the life of an owner, founder, or key employee whose death or disability would significantly impact the company's operations and finances.
Fidelity Bond
Insurance that protects a business against losses caused by employee dishonesty, theft, fraud, or embezzlement.
Surety Bond
A three-party agreement where the surety guarantees to the obligee that the principal will fulfill their contractual obligations, commonly required in construction and government contracts.
Errors and Omissions Insurance
Professional liability coverage that protects service providers against claims of inadequate work, negligent actions, or failure to perform services as promised.
Commercial Umbrella Insurance
Additional liability coverage that extends beyond the limits of a business's primary liability policies, providing extra protection against large claims.
Inland Marine Insurance
Coverage for movable property, equipment, and goods in transit over land, including tools, equipment, and merchandise being transported or stored off-premises.
Builders Risk Insurance
Specialized property insurance that covers buildings under construction, including materials, fixtures, and equipment, against damage from fire, theft, vandalism, and weather.
Crime Insurance
Coverage that protects businesses against losses from criminal acts such as theft, burglary, robbery, forgery, and computer fraud.
Liquor Liability Insurance
Coverage for businesses that manufacture, sell, serve, or distribute alcoholic beverages, protecting against claims arising from alcohol-related incidents.
Malpractice Insurance
Professional liability coverage for licensed professionals such as doctors, lawyers, and accountants, protecting against claims of negligence or inadequate professional services.
Pollution Liability Insurance
Coverage that protects businesses against claims and cleanup costs related to pollution, contamination, or environmental damage caused by business operations.
Fiduciary Liability Insurance
Coverage that protects those who manage employee benefit plans against claims of mismanagement, breach of fiduciary duty, or errors in plan administration.
Business Income Coverage
Insurance that reimburses a business for lost income and continuing expenses during periods when operations are suspended due to covered property damage.
Extra Expense Coverage
Insurance that pays for additional costs incurred to continue business operations following a covered loss, such as renting temporary space or equipment.
Equipment Breakdown Insurance
Coverage for repair or replacement of mechanical and electrical equipment that breaks down due to internal causes such as motor burnout, electrical arcing, or mechanical failure.
Garage Liability Insurance
Specialized coverage for auto repair shops, dealerships, and parking garages, protecting against liability claims arising from business operations and customer vehicles.
Garagekeepers Insurance
Coverage that protects auto repair shops and parking facilities against liability for damage to customers' vehicles while in their care, custody, or control.
Media Liability Insurance
Coverage for businesses involved in advertising, publishing, or broadcasting, protecting against claims of libel, slander, copyright infringement, and invasion of privacy.
Contingent Business Interruption
Coverage that protects a business against income loss when operations are disrupted due to damage at a supplier's, customer's, or other dependent business location.
Builder's Risk Insurance
A specialized type of property insurance designed to cover materials, fixtures, and equipment used in the building or renovation of a structure in case of loss or damage during construction.
Business Personal Property
Coverage for the cost to repair or replace business property such as computers, furniture, and inventories if they're lost, damaged, or stolen. Generally does not cover property stolen by an employee.
Products-Completed Operations Aggregate
The maximum amount of coverage offered under a general liability insurance policy for claims and lawsuits related to injury, illness, or property damage caused by delivered products or completed services.
Fleet Insurance
Commercial auto insurance that covers multiple vehicles (typically 5 or more) owned by a business under a single policy, often at discounted rates.
Hired and Non-Owned Auto Coverage
Business insurance that covers liability for vehicles rented by the company or employees' personal vehicles used for business purposes.
Performance Bond
A surety bond that guarantees a contractor will complete a project according to contract terms, protecting the project owner from financial loss if the contractor defaults.
Payment Bond
A surety bond that guarantees a contractor will pay subcontractors, laborers, and material suppliers, protecting them from non-payment if the contractor defaults.
Bid Bond
A surety bond submitted with a construction bid that guarantees the bidder will enter into the contract and provide required performance and payment bonds if awarded the project.
Maintenance Bond
A surety bond that guarantees a contractor will repair defects in workmanship or materials for a specified period after project completion, typically one year.
License and Permit Bond
A surety bond required by government agencies to obtain certain business licenses or permits, guaranteeing compliance with applicable laws and regulations.
ISO CGL Form
ISO Commercial General Liability form - a standardized liability insurance policy that covers bodily injury, property damage, personal injury, and advertising injury claims. The most common form is CG 00 01.
ISO BOP
ISO Businessowners Policy - a standardized package policy combining property and liability coverage designed for small to medium-sized businesses, typically using form BP 00 03.
ISO Workers Compensation Form
Standardized ISO forms for workers compensation coverage, including WC 00 00 01 (basic policy) and various endorsements for modifying coverage terms.