Insurance provides a measure of protection against the unexpected for businesses and individuals. For many policyholders, other liability or commercial insurance can help mitigate the risks from legal liability associated with some form of negligence, actions that may cause injuries to other individuals, or activities that result in some type of property or other damage. It may also cover the cost of disbursements a policyholder could be held liable for related to the incident. Criminal prosecution and intentional damage are usually not covered.

Types of coverage include errors and omissions insurance, liquor liability, commercial auto, property damage and marine.

Product liability, which has become a major issue for manufacturers using multiple sources for product components, is a separate type of coverage, but is necessary to protect these companies as well as distributors or sellers. Since many products are manufactured in foreign countries that may not have the same production standards as the U.S., faulty components can create liability issues for automakers, cell phone companies and other industries creating complex, multi-faceted products.