What is Casualty Insurance?

Mary McMahon
Mary McMahon

Casualty insurance covers losses and liabilities that are a result of unforeseen accidents. This category of insurance is quite broad, encompassing a range of situations and fields within the insurance industry. Generally, it excludes life, health, and fire insurance policies; it is designed for things like burglary, terrorist attacks, and fraud. Many insurance agents offer this type of insurance; people who are interested in purchasing some for a home, specific situation, or business should talk to an insurance agent about their specific needs.

Casualty insurance plans can sometimes be purchased for events like earthquakes.
Casualty insurance plans can sometimes be purchased for events like earthquakes.

Typically, casualty insurance covers both damages to property and people. For example, if someone purchases a policy for a boat and someone is injured on board, the insurance company will bear that person's medical costs. Likewise, if part of the boat is damaged as a result of something like a burglary attempt, the insurance company will also cover this unforeseen event. This type of insurance is very useful for things like replacing broken plate glass or handling the aftermath of criminal acts.

Casualty insurance will not typically cover damage caused by flooding.
Casualty insurance will not typically cover damage caused by flooding.

Casualty insurance that includes personal liability can be very useful for business owners, as it ensures that the business will be able to take care of people who are injured on site. Homeowners can also take advantage of this insurance to help them replace items stolen during robberies, as can renters. A policy may also cover the people who visit a home, in the event of an accident.

Casualty insurance typically covers damage to both property and people.
Casualty insurance typically covers damage to both property and people.

When this insurance is purchased for something like a home or a business, it should be viewed as supplemental insurance. It will not cover things like fires and floods, which need to be separately insured. People should also read the terms of their policy carefully, because certain things may not be covered, and this could become an issue when a claim is made. Specific insurance plans can sometimes be purchased for events like earthquakes, depending on regional norms in the insurance industry.

One important type of casualty insurance is so-called “fidelity insurance” or surety bonds that are designed to protect people from the results of fraud. Fidelity insurance is also maintained by organizations like housekeeping businesses, to ensure that losses as a result of theft can be compensated. Specific insurance can also be purchased to protect people from the results of Internet fraud and identity theft, two growing issues.

Casualty insurance can cover medical costs of someone involved in an accident.
Casualty insurance can cover medical costs of someone involved in an accident.
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a wiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

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Discussion Comments

anon93165

Casualty Insurance is a group of insurance policies that covers natural or man-made disasters which results to loss in property and money.

You can get insurance for several dangers. However, you must be very specific with these dangers so you can make a claim when it happens.

hahaha

Liability is already a part of casualty insurance, which is an insurance for unforeseen accidents and events. The liability shall protect the purchaser (insured) in the event that he is sued on types of claims.

anon38751

With reference to a insurance carrier business relationship, what are commission checks for insurer?

anon35887

what is the difference between the face value and cash value

anon35886

casualty insurance is related to the physical damage caused by any casualty like fire, flood, theft. However liability insurance is generally to give indemnity for third party liability

anon35834

I am often confused with casualty insurance and liability insurance. What is the difference between casualty and liability insurance?

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