Casualty insurance is a type of insurance coverage that provides financial protection against losses or damages resulting from unforeseen events, such as accidents, theft, vandalism, and natural disasters. Unlike property insurance, which primarily covers physical damage to the insured property, casualty insurance typically covers a broader range of risks, including liability for bodily injury or property damage caused to others.
There are several common types of casualty insurance policies, including:
1. Auto Insurance: Provides coverage for damages or injuries resulting from accidents involving automobiles, including collision coverage for damage to the insured vehicle and liability coverage for bodily injury or property damage caused to others.
2. Homeowners Insurance: Includes coverage for both property damage (e.g., fire, theft, vandalism) and liability protection for injuries or damages occurring on the insured property.
3. Commercial General Liability (CGL) Insurance: Protects businesses against claims for bodily injury or property damage caused by their operations, products, or services. CGL policies typically cover legal defense costs as well.
4. Workers’ Compensation Insurance: Provides benefits to employees who suffer work-related injuries or illnesses, including medical expenses, lost wages, and rehabilitation costs. It also protects employers from lawsuits related to workplace injuries.
5. Umbrella Insurance: Offers additional liability coverage beyond the limits of primary insurance policies, providing broader protection against catastrophic losses or lawsuits.
Casualty insurance policies vary in terms of coverage limits, deductibles, and exclusions, so it’s essential for individuals and businesses to carefully review their insurance needs and select policies that adequately protect against potential risks. Having casualty insurance in place can provide peace of mind and financial security in the event of unexpected accidents or losses.
