Casualty Insurance explained

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Casualty Insurance often goes along with the Property Insurance, as these two types of policies have similar concept and purposes. In this article, we will take a closer look at this type of Insurance to help a reader make a smarter decision.

Let’s begin with the definition of Casualty Insurance that is an Insurance that goes into effect in a case when a policy holder’s mistake, omission, or negligence is resulted in third party’s loss (of whatever nature: health, property, house, money, car).

Casualty insurance includes occasions in the following spheres: car accidents, uninsured motorist coverage, commercial and individual property damage, bodily injury, and workers’ mistakes, theft, crime and fraud (commercial casualty).

What does Casualty Insurance include?

Casualty Insurance

Casualty Insurance includes way larger range of cases, comparing to auto insurance or property insurance. If the car Insurance policy relates purely to auto damage and the damage resulted from car accidents, then casualty Insurance covers a much wider spectrum of perils related to cars, property, business and personal liability: property damage, car accidents, commercial assets, and it is often a part of a homeowner’s Insurance.

Who can benefit from getting Casualty Insurance the most?

Due to Casualty Insurance being, in fact, a liability Insurance, corporations, and individuals that are working with people and people’s property can benefit the most from having this the policy.

Being a business owner you can never rule out the mistake (occasional or intentional) made by one of your workers. Now, imagine a situation where this mistake had caused the physical or emotional injury or property and money loss of a client (the third party). One single lawsuit from that person can make your company bankrupt, depending on how serious the consequences of that mistake are.

Casualty

In order to protect the business from troubles like this, an owner should buy a Casualty Insurance where the types of potential mistakes and negligence are listed and covered.

Another benefit relates to commercial autos, where the car that belongs to a Company is involved or became a reason of a road accident and a third party’s car damage or bodily injury are a direct result of that accident.

Without the Casualty Insurance policy, a small Company that owns a car can literally go bankrupt if serious injury or death results from an accident. Policy covers expenses related to medical care of the third party and their vehicle’s repair.

What to choose: Casualty Insurance or Personal Accident Insurance?

Although these two types of Insurances are very similar by risks they cover, still, Casualty Insurance and Personal Accident Insurance have several core differences.

Personal Accident Insurance covers a limited number of occasions that can lead to a harm of a third party or damage of a third’s party property.

What to choose

Casualty Insurance could come in handy for those individuals and corporations who own a large number of property items or who use cars extensively so they have increased chances of the “event” happening, that is the subject of Insurance policy.

In short: Casualty Insurance provides a policyholder with a way broader protection, but of course, it costs more compared to Personal accident policy.

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