There are many types of insurance coverage, including casualty, third-party liability and business interruption insurance.
In theory, insurance is a way of the private and public parties to shift the risks of a project that is unacceptable to them to an insurance company. In practice, insurance coverage is often limited in scope and contains wide ranging exceptions. A cost and benefit analysis of obtaining certain insurance covers should be considered, given that the premium for PPP related insurance policies are considerable. Lenders often insist that insurance policies are obtained, but the other parties may more sensibly or cheaply cover the risks covered by these insurance policies, for example by way of government stand-by loan commitment.