Commercial Lines
What Are Commercial Lines of Insurance?
Commercial lines is the insurance term for policies that cover businesses instead of people.
Here’s an example: commercial auto is a commercial lines insurance policy, but personal auto is not. The former covers vehicles used for business purposes, while the latter only covers vehicles for personal use.
What are Some Examples of Commercial Lines of Insurance?
- General liability: Covers other people’s injuries and property damage caused by your business operations
- Professional liability: Covers you if you make a mistake giving professional advice or forget something important
- Commercial auto: Covers claims involving your business vehicle, like accidents, damages, injuries, and lawsuits
- Workers compensation: Covers state-required benefits for your employees if they become injured on the job
- Inland marine: Covers your mobile business equipment if it is stolen or damaged
- Cyber liability: Covers expenses stemming from cybercrimes, such as data breaches and ransomware
- Commercial property: Covers damage to a business’ building and interior contents when destroyed by a covered incident, such as a fire
- Employment practices liability insurance (EPLI): Covers legal expenses when an employee claims their rights have been violated, such as wrongful discrimination
What are the Differences Between Commercial and Personal Lines?
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| Commercial Lines Insurance | Personal Lines Insurance | |
|---|---|---|
Who It Covers |
Businesses, organizations, and self-employed individuals |
Individuals and families |
Purpose |
Protects against risks inherent to running a business |
Protects personal property and liability |
Common Examples |
General liability, commercial auto, workers compensation, property insurance, professional liability |
Homeowners insurance, personal auto insurance, renters insurance, personal umbrella insurance |
Coverage Location |
Business premises, job sites, client locations, event venues, and on the road for work |
Personal residence, personal vehicle use, personal belongings |
Risk Level |
Designed for higher or specialized risks of business operations |
Designed for everyday personal risks |
Who Needs It |
Any business (big or small), including solo entrepreneurs |
Anyone with personal property or liability exposure outside of business use |
Will My Homeowners Policy Cover My Business If I Work From Home?
No — homeowners insurance is a personal lines coverage, so it is not designed to protect your business. Some homeowner policies may provide limited coverage for any business property you keep in your home, but they will not cover your business’ liability risks.
Does My Personal Auto Insurance Protect Me While Driving for Work?
No, most personal auto policies will not cover the cost of any injuries or property damage caused while driving your personal vehicle for work reasons. If you drive a vehicle for work, even if it’s the same one you use for personal reasons, you need a commercial auto policy.
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