Casualty insurance is a catch-all term that describes a wide variety of insurance coverage. Generally, casualty insurance is needed because it covers losses not covered by normal commercial property insurance.
The main difference between casualty and property insurance is that casualty insurance usually covers not only property but people, as well, including medical costs incurred by individuals injured as a result of a business's normal activities.
Another difference is that casualty insurance covers losses caused by human behavior, such as crime. Both a property and a casualty business insurance quote will be for a policy that pays for losses caused by vandalism or theft. A casualty insurance policy, though, might also pay for medical expenses for an employee or customer injured in a robbery at a business.
Why Casualty Insurance Is Necessary
Casualty insurance is needed because it covers losses not covered by other policies, and therefor not reflected in the business insurance quote.
A business's health, disability, and workers' compensation insurance will cover employees who are injured on the job. These policies will not, however, cover customers and other non-employees who might be injured on a business's premises. A casualty insurance policy is needed to cover the medical expenses of a customer injured in an accident at a store.You will need a business insurance company that specializes in these types of policies to ensure you are getting the best coverage.
A casualty policy could also cover property not owned by the business that is on its premises. For example, an auto-repair business might have a casualty policy that would cover the loss of a customer's car if a fire destroyed its garage.
Protection from Financial Losses
Another important reason for having casualty insurance is that it also reimburses businesses for financial losses such as money stolen in a burglary or robbery. Casualty insurance can also reimburse businesses for losses caused by fraud and other white-collar crimes. Property insurance will not cover these losses.
Fidelity insurance, or bonding, is a kind of casualty insurance that covers losses caused by a business's employees, such as theft, fraud, or vandalism. In many cases a business must purchase a bond and do a background check on the employee to get this insurance. Business insurance companies will often customize a plan for your business' specific needs.
Purchasing Casualty Insurance
Many businesses require specific kinds of casualty insurance policies. A repair business would need a policy that covers customers' property in its repair shop. A retail store would require a policy that covers customers shopping on its premises.
A business owner should always ask exactly what is and is not covered by a casualty insurance policy. Many businesses have a combined property and casualty insurance policy that provides some casualty insurance coverage.
Always make sure there is sufficient casualty insurance to cover common losses not covered by property insurance, and get more than one business insurance quote before making a decision about your policy.
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