Property and casualty insurance is a broad term and to understand how it’s useful, you must know exactly what it includes.
Here’s everything you need to know about this insurance and how it could be of relevance to you and your business.
What exactly is Property and Casualty Insurance?
Property and casualty insurance is an umbrella insurance term that’s relevant for both individual and commercial purposes. It covers a broad range of specific insurance covers that protect individual and commercial clients against a wide range of risks. These risks don’t just include potential damage to your property, but also potential legal liability if you’re deemed legally responsible for damage to third party property or accidental injury to another person.
How is it relevant for individual customers?
In case of individual customers, property and casualty insurance includes insurance of personal property such as your home and car, as well as personal liability and liability arising due to damage caused by your property.
Here are some scenarios to help you understand how this insurance can protect you.
Scenario 1: A visitor sustains an injury in your home
If a visitor sustains an injury while on your property, due to your negligence, or say a damaged or worn out wooden staircase, you could be held legally liable for his medical bills. Property and casualty insurance will help cover these costs.
Scenario 2: Your house is vandalized while you were away
Let’s say your house and its contents were damaged in a case of a burglary or vandalism. Property and casualty insurance will help cover the costs of repairs to your property and replacement of damaged contents in this case.
Scenario 3: You accidentally ram your car into a parked car
If you’re backing out of your parking lot and accidentally ram into another parked car, you would be held legally liable for the damages. The liability insurance aspect of property and casualty insurance would help pay for these damages.
How is it relevant for business customers?
In case of business customers, property and casualty insurance includes insurance of commercial property, commercial auto fleet, as well as public liability, product liability and employer’s liability.
Here are some scenarios to help you understand how this insurance can protect you as a business owner.
Scenario 1: A worker sustains an injury at the workplace
If one of your workers sustains a work-related bodily injury while on the job, the employer would be legally liable to pay for the medical expenses, as well as loss of wages. The workmen’s compensation or employer’s liability aspect of this insurance helps take care of such expenses.
Scenario 2: A fire breaks out at your warehouse
If a fire breaks out at your company’s warehouse and damages the structure as well as your goods, you may face a serious financial setback to your business. With property and casualty insurance, such risks and arising financial damages will be covered.
Scenario 3: If your product is contaminated and causes a customer to fall sick
If a product manufactured or sold by you, is found to be contaminated and causes a customer to fall sick, you may face a lawsuit claiming legal damages for the medical expenses. The product liability aspect of this insurance will cover such expenses.