Property casualty insurance, also known as property liability insurance, protects businesses from financial loss. Property casualty insurance is actually two types of insurance bundled into one policy, including a liability insurance component known as casualty insurance. The more you know about casualty insurance, the better you'll be able to determine whether or not casualty insurance is necessary for your business.
What is casualty insurance?
Casualty insurance is the liability insurance component of a property casualty insurance policy. This type of coverage protects from losses when another person's property is damaged or another person is injured and your company is at fault due to negligence.
An example of damage that might be covered by your casualty policy includes the following: a visitor to your building's lobby slips on a large puddle in the middle of the floor and breaks his or her wrist and an expensive watch.
What does casualty insurance cover?
Casualty insurance covers the following costs:
- Loss of property. Your casualty insurance policy will cover losses of property incurred due to your company's negligence.
- Loss of wages. If a person is injured due to your company's negligence and he or she is hindered from earning wages, your casualty insurance policy can pay for those wages while the person is in recovery.
- Legal fees. Your casualty insurance policy will cover your legal fees if you are sued by someone who has experienced a loss as a result of your business's negligence.
- Medical bills. The injured person may already have medical insurance, but if your company is at fault, those costs will be covered by your casualty policy and not the person's usual medical insurance.
- Pain and suffering. The injured person may also try to claim financial compensation for pain and suffering. If this happens, your casualty policy will cover those losses.
How will I know if my business needs casualty insurance?
There are few businesses that can't benefit from casualty insurance. This type of policy protects your business's assets, including investments and profits. If your business has assets to lose and interacts with clients, then casualty insurance can save your business from bankruptcy and financial ruin.
To find out more about whether or not your business can benefit from casualty insurance, speak with an insurance agent or a broker from a company like Donaghy Kempton Insurors. He or she will be able to advise you about what types of coverage and what level of coverage would be appropriate for your company.