Commerce

Extended warranty

Typically covers repair or replacement of goods sold after mechanical and electrical failures once the manufacturer’s warranty expires.

Can include mechanical or electrical breakdown, labor and parts, damage by accident and interim replacements

Accounts receivable

Generally reimburses customer invoices lost to bankruptcy, insolvency or prolonged nonpayment.

Can include unpaid customer invoices, insolvent customers, prolonged default and cost of collection

Business owner’s policy (BOP)

Usually combines coverage for premises and stock, third-party claims and business interruption in a single policy for a small trader.

Can include property, general liability claims, business interruption and optional extensions

Trade credit

Often helps protect credit sales against customer insolvency, prolonged payment delay and, for overseas buyers, political barriers to payment.

Can include unpaid customer invoices, buyer insolvency, prolonged default and political events

Cyber

Can pay response costs and lawsuits after customer data theft, such as stolen card details.

Can include breach response, business interruption and security failure liability

Product liability

May apply to merchants and distributors liable for injury or damage that goods they sell cause, not only goods they make.

Can include injury to people, damage to property and product defects

Product recall

Can help a seller pay to notify customers and retrieve products found unsafe, defective or in breach of regulations.

Can include cost of recall, business interruption, cost of replacements and crisis response

Cargo

Often insures a trader’s goods on the move against accident, theft, fire and natural disaster, at home or abroad.

Can include transit loss or damage, all-risk or named-peril basis, cross-border shipments and delays and contaminated loads

These guides describe types of insurance in general. The right coverage depends on your operations and the terms of the policy issued. Pasaca’s featured lines are cyber insurance, directors and officers (D&O) liability insurance, product liability insurance and aviation insurance.