Commercial insurance covers businesses (for profit) and nonprofit organizations, whereas individuals and families buy personal insurance to cover non-business insurance needs. Insurance for the property and liability of a restaurant falls under commercial insurance, while homeowner insurance covers the house and personal liability falls under personal insurance.

To liability and property insurers, the difference between commercial and personal insurance is essential. There are companies that offer only personal lines of insurance, some that offer only commercial lines, and some that offer both. There are separate divisions within an insurance company structure for personal and commercial lines. Commercial insurance generally involves a greater number of policy forms and endorsements than personal insurance.