Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as “perils”. An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set out below. For example, auto insurance would typically cover both property risk and liability risk. 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 coverage for medical expenses of guests who are injured on the owner’s property.
Business insurance can be any kind of insurance that upholds businesses against risks. The following are the different types of insurance.
- Life Insurance: Life insurance provides a monetary benefit to a decedent’s family or other designated beneficiary, and may specifically provide for income to an insured person’s family, 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.
- Auto insurance: Auto insurance protects the insured against financial loss if the insured meets with an accident. It is a contract between the insured and the insurance company. The person accepts to pay the premium, and the insurance company agrees to pay the losses as defined in the policy. Auto insurance provides property, liability, and medical coverage.
- Home insurance: Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances exclude certain types of disasters, such as floods and earthquakes, that require additional coverage. Maintenance-related problems are the homeowners’ responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.
- Health Insurance: Health insurance policies cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs.
- Property 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, house insurance, inland marine insurance, or boiler insurance.
For citing this article, use:
- Rao, D. J. M. (2012). Sales force management A study on Life Insurance Corporation of India Machilipatnam division.
