What is the difference between 'personal insurance' and 'commercial insurance'?

The distinction between personal insurance and commercial insurance primarily lies in the type of entities they cover and the purposes they serve. Personal insurance is designed to protect individuals and their personal assets, addressing coverage needs for items such as homes, automobiles, and personal liability. This type of insurance is tailored for risks that affect a person's personal life.

On the other hand, commercial insurance covers businesses and their operations, including property, liability, employees, and various specific risks associated with running a business. This insurance is essential for protecting against losses that could threaten the business's viability, such as damage to physical assets, lawsuits, or interruptions in business operations.

The other options do not accurately reflect the fundamental differences between the two types of insurance. Personal insurance can cover a broader range of risks beyond just home-related ones, commercial insurance varies widely in pricing depending on numerous factors, and both personal and commercial insurance can have mandatory aspects depending on state regulations and business structures.