An Overview of Property and Casualty Insurance

Casualties and losses come in when least expected. Hence, it is always beneficial to get insured against such incidents. Property and casualty insurance covers a range of general insurance policies. It generally provides two forms of coverage: property protection and liability insurance. In this article, we will delve into property and casualty insurance concepts and what each coverage means and entails.

Learning Property and Casualty Insurance Basics

So, what is property and casualty insurance?

Property and casualty insurance provides a number of coverage options depending on the nature of the property to be covered. It is basically created to protect your properties from theft or loss and your wealth from being drained by natural disasters or legal claims.

This type of coverage is suitable for companies and assists them in mitigating risks and liabilities that occur as a result of their activities. Other forms of coverage, such as life insurance, health insurance, and fire insurance, are not included in P&C insurance. Let us now look into property and casualty insurance in more detail.

Property Insurance

Property insurance applies to every insurance policy that protects your personal belongings. This coverage refers to personal property that has been stolen or destroyed as a result of damages like a burst pipe or fire. For example, if your property is vandalized and destroyed, you can claim coverage through a property insurance policy.

“Property” may include your home, the contents of your home, your car, valuable items, and even property owned by your company.

In simple terms, this is insurance that assists in the repair and replacement of your personal property.

Some of the different types of property insurance policies include:

• Package or Umbrella Insurance Policy
• Fire Policy Insurance
• Theft Insurance Policy
• All Risks Insurance Policy
• Marine Cargo Insurance Policy
• Machinery Breakdown Insurance Policy
• Electronic Equipment Insurance Policy

Casualty Insurance

Casualty insurance is designed to provide liability coverage. This portion of your insurance will cover the expenses for your legal liability if caused damage to another party. It will usually cover expenses both in and out of court, but it will cover legal bills and any penalties you’re supposed to pay, provided it is within your mandatory coverage.

Here’s an example to understand this concept. Suppose an individual gets injured due to an accident on your property, and you are found responsible. In that case, you are liable to compensate for the loss or harm. A casualty insurance policy will cover this cost, minimizing your out-of-pocket expenses.

This is the insurance that assists you in compensating another person if you are held accountable for their losses.

Some of the different types of casualty insurance policies include:

• Commercial General Liability Insurance Policy
• Public Liability Insurance (Non-Industrial & Industrial) Policy
• Workmen’s Compensation Insurance Policy
• Pollution Legal Liability Insurance Policy
• Umbrella Liability Policy
• Product Liability-Indian Market Wordings Policy

The aim of insurance policies is to assist you in planning for the unexpected. Getting a plan in place ensures that you are not left with a large bill in the event of an accident. Property and casualty insurance covers you, your possessions, and your family from any kind of unforeseen event.