What is the main function of commercial insurance?

The main function of commercial insurance is to protect businesses against financial losses. This type of insurance is designed to cover a variety of risks that businesses may encounter, such as property damage, liability for accidents and injuries, and other unforeseen events that can lead to significant financial difficulties. By providing coverage for these potential losses, commercial insurance helps businesses maintain their operations, manage risks effectively, and ultimately safeguard their assets and employees.

The focus is specifically on business risks rather than personal property, which is typically covered under personal insurance policies. Additionally, while certain policies may include health-related claims (like workers' compensation), the overarching goal is not specifically to insure health claims alone. Similarly, retirement plans for employees fall under employee benefits rather than commercial insurance, which primarily centers around protecting the business from operational risks and liabilities.