Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care.

In recent days insurance like Life Insurance, Medical Insurances (including all the medi- claim policies) and Commercial Insurance became very much popular. At one time people used to think about having made insurance or not but now it became almost necessity. The insurance farms takes care of all valuable things possessed by us including our own life, all these services they provide for a mere premium or duty care. Insurance farms like National Insurance, Oriental

Insurance, Life Insurance corp., are very popular. Here we will discuss about the Commercial Insurance-Its pros and cons.

By the term Commercial insurance we mean insurance of all commercial properties like shops, office place, banks, commercial buildings, etc. The need for insuring these places arise due to burglary, theft, fire, flood, natural calamities, etc. There are several Commercial insurances for all of the above things and we will focus on some of them.

1) Burglary Insurance:

It is possible to insure the contents of private dwelling houses against burglary, house- breaking and larceny. The contents of business premises are also covered against burglary and house breaking. Other forms of burglary policies cover all risks insurances of jewellery, furs, etc.; baggage insurance covers risks of luggage in transit; risks of cash and securities in transit, etc., can be also covered.

2) Fire Insurance:

A fire insurance policy is a contract of indemnity, and an insurer undertakes to indemnify an insured against a loss.

In Fire Insurance premiums are charger according to risks. Many companies have joined an association, and its members are called Tariff Offices. The latter have agreed to charge the same premiums for similar risks but Non-Tariff offices can charge any premium they like.

Fire Insurance mainly covers any damage of goods or property arising due to fire which must be accidental or non-intentional. The fire may be due to explosive, short circuit, shock or any other kind of accidental fire.

3) Shopkeepers' Insurance Policy:

This insurance is mainly for the shopkeepers and this insurance covers

all items in a shop including electrical fittings in the shop. This insurance is mainly drawn up against burglary, arson, looting, fire, breakage, dishonesty of employees, etc., electrical goods shop, showroom of automobiles, departmental stores and other multiplexes and shopping malls are insured under this category.

4) Money Insurance:

This type of insurance is mainly drawn by banks, financial institutions and other public saving units. This insurance mainly covers losses arising due to loss of cash or cash for salary in transit from bank to insured. Loss of cash due to dishonesty of the employees or due to burglary, dacoity, robbery etc.

5) Inland Transit Insurance (Rail/ Road):

This type of insurance mainly covers any loss or damage of the goods in transit in rail or road. This insurance is mainly taken up by transportation companies government transport has also insurance policies for the goods they carry inland. So any loss or damage during transportation of the goods or during loading and unloading or storing is covered in this insurance. The insurance policy protects goods against fire, lightning, accident of the carriage vehicle, derailment of the goods train, overturning, wagon breakage, looting etc. This insurance policy pays for the total/ partial loss to the property insured caused by an insured peril. Valid claims are paid as per the agreed value. Claims arising from partial losses are paid on the basis of the proportionate insured value.

6) Marine Insurance:

Insurance originated in the marine field and a marine insurance policy is a contract of indemnity, which obliges an insurer to indemnify an insured against marine losses according to policy conditions. A marine insurance contract can be given to an insured either by a company or by private individuals belonging to Lloyds. Lloyds is an important body for marine insurance and the bulk of marine insurance business are underwritten by Lloyds. Lloyds is an incorporated society consisting of several members. Lloyds is not only the pioneer but it leads in marine insurance.

Hull and Cargo insurance:

Three things are mainly insured by a marine policy, namely hull (viz., a vessel), cargo and freight.

In case of hull insurance the full value of a vessel is not covered by a policy deliberately by an insurer, who wants an insured to bear a portion of the risk. This is done to ensure the honesty of a vessel owner.

Cargo insurance covers the full value of the goods whose ownership may change if they are dispatched. So a consignor has little interest in over-insurance of goods. An underwriter has to depend on an insured for obtaining the correct value of cargo.

Beside all these Air Transit Insurance is there which takes care of the goods/cargo transit during flight or any damage occurring due to storage in flight or any type of mishandling of goods in transit. Above all these insurances, which made our life much easier, are the personal care and safety measures which all of us should take to protect our belongings from any kind of damage.