Casualty insurance protects businesses, employers, and individuals from liability due to damage, loss of property, and more. This includes vehicle insurance, theft insurance, and liability insurance. Casualty insurance can also encompass worker’s compensation for businesses. To be clear, liability loss is caused by the insured’s interactions with others and their property. This coverage can protect you from financial loss if you are sued for being liable for injury or property damage.
How Does Property and Casualty Insurance Work?
Liability losses are sometimes called third-party losses, meaning you are liable to a third-party individual or entity. You become legally liable if it was determined that you caused damage due to negligence. One example is the case of car damage. If you or a family member causes damage to someone else’s vehicle (their property), your casualty insurance will mean that you do not have to pay out-of-pocket to cover the damages.
Who Needs P&C?
Do you own property? Are you in a position to potentially cause damage to someone else’s property? Then it is possible you could become liable for damages in the event that you are at fault for an accident or if someone gets hurt on your property. Liability coverage is a facet to property and casualty insurance that saves insured homes, businesses, and vehicles from being lost to a lawsuit. If you want the bare minimum of insurance, you need liability coverage to protect you from potentially losing assets in the event of being found legally responsible.
P&C for Business
Business owners should have casualty insurance to provide workers’ compensation of lost wages if someone is injured on the job. Workers comp also covers medical fees related to injuries. When employees agree to receive workers’ compensation, they agree to give up their right to sue the company for negligence. This is for the protection of the workers and business, to avoid financial loss to the business in a legal battle and gain guaranteed compensation for the worker. Workers’ compensation is also tax-free. The policies for workers’ compensation are determined by the state, with little regulation nationwide.
If you produce something, there is a chance that your product can cause harm to someone. Aside from the legal warnings, you should provide with the packaging, you should get liability insurance. Being sued for damages could be even more detrimental to small businesses, so coverage will protect your pocket and keep your doors open.
For all of your property and casualty insurance questions, come to Redwood Agency Group.
