Policy Type Terms

Policy Type / Line of Business (LOB) / Product

Policy Type, LOB and Product in insurance refers to the specific category/type of insurance coverage. These terms are used to differentiate the various kinds of insurance products available in the market, each designed to cover different kinds of risks.

Eg policy types: Car Insurance, Home Insurance, Workers Compensation, General Liability etc

Property & Casualty (P&C) Insurance

Property and casualty insurance refers to types of coverage that protect the things you own (like your home, car, business property etc). These insurances also include liability coverage. This helps protect you if you’re found legally responsible for an accident that causes injuries to another person or damages to their property.

The "property" portion of P&C insurance refers to protection for property that you own or rent. This includes things like your home, car, rental property, business property or personal possessions.

The “casualty” portion of P&C insurance provides liability protection, which helps protect you if you're found legally responsible for an accident that causes injuries to others or if you damage another person's property. This includes Professional Liability (Lawyers, Doctors etc), Product Liability, Workers Compensation etc.

P&C Insurance can span both Personal lines coverage and Commercial lines coverage

Eg:

1. Car Insurance - Property covers the car itself. Casualty covers any liability from crashing into someone and hurting them or damaging their property
2. Business Owner’s Policy - Property covers the property owned/rented by the business and the valuables inside the property. Casualty covers general liability items such as being sued by your supplier or customer

Personal Lines

Personal lines insurance refers to any kind of insurance that covers individuals against loss that results from death, injury, or loss of property. These insurance lines generally protect people and their families from losses they couldn’t afford to cover on their own.

Eg: Health Insurance, Personal Car Insurance, Home Insurance, Renters Insurance etc

Some personal lines of insurance also come under P&C insurance. Eg: Home Insurance (property part of P&C), Car Insurance (both property and casualty part of P&C)

Commercial Lines

Commercial lines insurance includes property and casualty insurance products for businesses. Commercial lines Insurance protects businesses from potential losses they can't afford to cover and allows companies to operate when it might otherwise be too risky.

Eg: Workers Compensation, Business Owners Policy, General Liability etc