How Does Casualty Insurance Work?

Casualty insurance covers losses resulting from accidents or natural disasters. It protects individuals and businesses from financial loss in an unexpected accident or disaster.

There are several types of casualty insurance, each meant to cover specific incidents you may need coverage for. With these different options, you can tailor your casualty coverage to meet your specific needs.

The 3 Types of Casualty Insurance

1. Liability insurance covers losses resulting from the insured person’s legal liability for damages or injuries to others. This type of insurance is often required by law, especially for businesses, to protect against lawsuits and other financial liabilities.
2. Property insurance covers losses resulting from damage to an insured person’s property. This can include damage caused by natural disasters, fires, theft, or other accidents. Property insurance can also cover loss of use of the property, such as when a building is uninhabitable due to damage.
3. Personal insurance, or personal injury insurance, covers losses resulting from injuries to an individual, such as medical expenses and lost wages.

What Happens When You Have Casualty Insurance?

Casualty insurance policies are typically written for a specific period of time, called a term. The policyholder pays premiums to the insurance company during the duration of the policy, and the insurance company agrees to pay for any covered losses that occur during that time.

Casualty insurance won’t cover any intentional harm or damage. The loss must be accidental and unexpected to qualify for coverage.

When a covered loss occurs, the policyholder must file a claim with the insurance company. They will investigate whether it is covered, and if it’s approved, the insurance company will pay for the covered losses up to the policy limits. So, if you purchase $100,000 worth of coverage, but the incident costs $200,000, your policy will cover the policy’s limit of $100,000, not the full amount.

Choosing Your Casualty Insurance Policy

Carefully review the terms and conditions of a casualty insurance policy before purchasing it. You must understand what is and is not covered under the policy and any exclusions or limitations.

Also, consider your policy’s deductible. You must meet this out-of-pocket cost in case of an incident for your policy to apply its coverage. Come up with a course of action to cover the deductible in case of an incident, and you’ll be ready to go.

Take the Next Step Toward Your Best Insurance

Jones Insurance Group can help you get there even if you’re unsure where to start. It only takes a few minutes to get a free quote, and we can work together to decide on your best policy.