Other Kinds Of Property And Liability Insurance

Other kinds of property and liability insurance include (1) special multiple-peril and business owners' insurance, (2) marine insurance, (3) crime insurance, (4) surety bonds, and (5) product and professional liability insurance.

1. Special Multiple-Peril And Business Owners' Insurance
Special multiple-peril and business owners' insurance provides property and liability coverage of business risks. It is similar to homeowners' insurance.

2. Marine Insurance
Marine insurance consists of two types of insurance that deal with risks involved in transportation. Ocean marine insurance covers commercial and recreational vessels operating on oceans, lakes, and rivers and in harbors. It includes both property and liability coverage and compensates for the loss of a vessel and its cargo. Inland marine insurance provides protection against losses connected with land transportation. It covers cargo as well as bridges, railroads, tunnels, and other facilities involved in transporting cargo.

3. Crime Insurance
Crime insurance protects policyholders against losses from such acts as theft, burglary, robbery, forgery, and embezzlement. Most homeowners' policies and commercial multiple-peril policies include theft, robbery, and burglary insurance.

Businesses may buy a type of crime insurance called fidelity bonds. Such insurance protects them against losses due to dishonest acts by employees who handle money or valuable merchandise.

Banks and other financial institutions purchase a broader type of crime insurance called blanket bonds. The bonds provide protection against criminal acts to bank property by nonemployees and employees as well as against fires, tornadoes, and other natural hazards.

4. Surety Bonds
Surety bonds guarantee that the insured will fulfill a certain obligation. One of the most important types of surety bonds is a contract performance bond. Under such a bond, the insurance company, sometimes called a surety, promises to see that a project is completed if the insured contractor fails to complete it according to the terms of the contract. Other types of surety bonds include bail bonds and fiduciary bonds. A bail bond guarantees the appearance in court of a person accused of a crime. If the accused person appears in court, the money for the bond is refunded. Otherwise, the money is forfeited. Fiduciary bonds guarantee the performance of people who are appointed by a court to be responsible for another's property.

5. Product And Professional Liability Insurance
Product and professional liability insurance protect manufacturers and professionals against losses from certain kinds of lawsuits. Product liability insurance protects manufacturers from suits in which consumers claim injuries as a result of using defective products. Professional liability insurance protects such professionals as physicians, accountants, and lawyers against losses from lawsuits in which a patient or client accuses them of error or negligence. Professional liability insurance is sometimes called malpractice insurance.