Suhail asked in Business & FinanceInsurance · 1 decade ago

Are there insurance companies which SPECIALIZE in only a certain TYPE of insurance, e.g. against fire only?

Hey!

I want to know whether:

a) an insurance company can insure your property, life, etc. against ALL types of damage?

b) there are SPECIALIZED insurance companies, e.g. Company X provides insurance only against fire, or Company Y only provides life insurance against car accidents, etc.

or both.

Thank You!

3 Answers

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  • Jo
    Lv 4
    1 decade ago
    Favorite Answer

    a) no. You cannot insure against certain things: wear and tear, intentional damage, et cetera.

    b) in the olden days, companies were only allowed to offer one kind of insurance and one kind only. The company I work for was established to sell work comp insurance and only work comp insurance. When the government changed things so that insurers could sell more than one kind of insurance, my company went into many lines of property and casualty in the area of commercial insurance. Then they expanded to offer personal insurance.

    Some companies still do insure only specific types of risk. The Hartford does a lot of different types of insurance. Hartford Steam Boiler, however, does insurance on Steam Boilers. Some insurance companies sell specific programs. Pharmacists Mutual Insurance sells insurance to pharmacies. Other companies specialize in malpractice insurance. And so on.

  • 1 decade ago

    Stephen W

    If you knew the history of insurance, then you would know that originally insurers could only write specific types of insurance. If your company wrote workers comp, they only wrote workers comp. If they wrote property, they only wrote property. Inland marine policies were started because each insurer could only write specific insurance. They were too limited in what they could do. Therefore, someone came up with selling marine insurance (coverage for boats and their cargo) to cover on land needs. Hence, the name inland marine - marine meaning sea or ocean related, inland meaning away from the sea. Eventually, laws changed, so insurers could write more than one type of coverage. Many companies write several types of coverage. To this day, inland marine coverages are more flexible than most any other type of property and casualty insurance.

  • 1 decade ago

    No, to both questions, for different reasons.

    a. No company insures property against all types of damage. For example, no company insures against floods in the U.S. Insurance coverage for floods in the U.S. is available only from the government.

    b. Companies are not that specialized. For example, any company selling life insurance would sell policies that cover all types of accidental deaths, not just car accidents.

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