Written by JULIA KAGAN and last updated on June 21, 2021
A broad category of insurance that protects individuals, businesses, and employers from property loss, damage, or other liabilities is known as casualty insurance.
Vehicle insurance, liability insurance, and theft insurance are all examples of casualty insurance.
Losses that result from the insured’s interactions with other people or their property are known as liability losses.
Having casualty insurance is essential for car or home owners because damage can result in substantial costs.
Casualty insurance is a term that has traditionally been used to refer to a wide range of additional types of insurance, including aviation, workers’ compensation, and surety bonds, in addition to auto and liability insurance.
Important Takeaways Vehicle, liability, and theft insurance are all part of casualty insurance.
Liability insurance shields you from financial loss in the event that you are held legally liable for someone else’s harm or property damage, just like property insurance does.
Workers’ compensation insurance is one essential casualty insurance that every business should have.
How Casualty Insurance Works In the same way that you can buy property insurance to protect yourself from financial loss, you can also buy liability insurance to protect yourself from financial loss if you are found legally liable for someone else’s injuries or property damage. One must have demonstrated negligence—the failure to exercise proper care in one’s own actions—to be held legally responsible. The responsible party is responsible for any resulting damages if their carelessness causes harm to another person. Insurance professionals frequently refer to liability losses as third-party losses. The insured party is the first. Second party is the insurance company. The third party is the party for whom the insured is responsible for damages.
