Different Types of P&C Insurance—And Who Actually Needs Them

Understanding Your Coverage Options

When most people hear “property and casualty insurance,” they think homeowners insurance or car insurance. And they’re not wrong—but that’s just scratching the surface.

P&C insurance can cover almost anything valuable or vulnerable to loss—from your vacation home and business to your art collection, horses, yacht, or even your private jet. Yes, even celebrities use P&C-style insurance to protect unusual assets.

💡 Fun fact: Supermodel Heidi Klum reportedly insured her legs for over $2 million. One leg was actually insured for more than the other due to a scar!

While it may sound bizarre, this kind of specialized policy falls under the P&C umbrella—often written as a personal articles floater or a surplus lines policy.

So whether you own a historic mansion or a racehorse, P&C insurance is likely what protects it. Let’s break down the types of coverage available, who they’re best for, and what they do.

🏠 For Individuals & Families

• Homeowners Insurance
  Best for: Homeowners
  What it does: Covers your house, belongings, and liability if someone is injured on your property. Often required by mortgage lenders.

• Renters Insurance
  Best for: Tenants
  What it does: Protects your personal belongings and provides liability coverage—even though you don’t own the property.

• Auto Insurance
  Best for: Drivers
  What it does: Covers vehicle damage, theft, and liability in case of an accident. Required in most states.

• Umbrella Insurance
  Best for: Anyone with significant assets to protect
  What it does: Adds extra liability coverage above and beyond your home and auto policies. Kicks in when those limits are maxed out.

• Landlord Insurance
  Best for: Property owners renting out residential units
  What it does: Covers the building structure and landlord-specific liability (like tenant injury claims).

Did you know? Your home insurance might not fully cover your art, wine, or gold stash. You may need to schedule it separately to be fully protected.

🏢 For Business Owners

• General Liability Insurance (GL)
  Best for: Any business with customers, vendors, or employees
  What it does: Covers bodily injury, property damage, and legal fees if someone sues you for a covered incident.

• Commercial Property Insurance
  Best for: Businesses that own or lease physical space or equipment
  What it does: Covers your building, inventory, equipment, and furnishings if damaged by fire, theft, vandalism, or some weather events.

• Business Interruption Insurance
  Best for: Businesses that rely on physical locations to operate
  What it does: Helps cover lost income and ongoing expenses if your operations are disrupted by a covered event (like a fire or storm).

• Builder’s Risk Insurance
  Best for: Developers, builders, contractors
  What it does: Covers structures under construction—including materials and labor—against damage from fire, theft, vandalism, and weather.

• Workers’ Compensation Insurance
  Best for: Any business with employees
  What it does: Covers medical expenses and lost wages for employees injured on the job. Required by law in most states.

• Professional Liability (Errors & Omissions or E&O)
  Best for: Consultants, advisors, and licensed professionals
  What it does: Covers claims of negligence or mistakes in professional services (think missed deadlines, bad advice, or contract errors).

• Cyber Liability Insurance
  Best for: Businesses that handle sensitive data or operate online
  What it does: Covers losses from data breaches, hacking, or cyberattacks, including legal fees and customer notifications.

• Product Liability Insurance
  Best for: Businesses that manufacture or sell physical goods
  What it does: Covers claims related to product defects that cause injury or damage.

• Directors & Officers (D&O) Insurance
  Best for: Corporations, nonprofits, and startups with boards or executives
  What it does: Protects directors and officers from lawsuits related to their decisions or leadership actions.

• Employment Practices Liability Insurance (EPLI)
  Best for: Businesses with employees
  What it does: Covers claims of discrimination, harassment, wrongful termination, and other HR-related issues.

😎 Specialty P&C Insurance – High-Value or Unique Risk Coverage

These policies are usually written in the surplus lines market, which handles unusual or high-risk insurance that standard insurers won’t cover. Technically, they are still part of the broader P&C category, but they’re highly customized.

For example:

• Heidi Klum’s legs were insured under a personal accident or dismemberment policy, often bundled with high-limit disability or income protection policies for celebrities.

• These are not health or life insurance—they’re structured as property-like coverage for a specific body part tied to income loss or career impact, much like insuring a valuable asset.

These policies are:

• Often placed by Lloyd’s of London, which is famous for writing niche risks

• Not typically available to the public without a high-value reason (celebrity, athlete, performer)

So yes—while it sounds wild, insuring a body part is a form of P&C insurance… just a very customized one. Click here to see more fun uses of P&C insurance.

Choosing the Right Coverage

Whether you’re a homeowner, landlord, small business owner, or real estate developer, your P&C insurance mix should reflect the actual risks you face. Some people just need auto and renters insurance. Others need layered, customized coverage across multiple policies.

Still not sure what applies to you? We’ve got your back.