What distinguishes personal insurance from commercial insurance?

The distinction between personal insurance and commercial insurance primarily lies in the entities they cover. Personal insurance targets individuals and families, providing coverage for personal property, health, life, and liability risks associated with private life. This includes policies such as homeowners insurance, auto insurance, and life insurance. Conversely, commercial insurance is designed for businesses, covering operations, assets, liability, and employees related to business activities. Examples include property insurance for business premises, liability coverage for business operations, and workers’ compensation.

This distinction underscores the different needs and risks associated with individual versus business activities. Hence, personal insurance and commercial insurance serve different purposes tailored to their respective audiences, making the choice that highlights this division the correct one.