Casualty insurance was designed to insure against unforeseen loses. It often goes together with property insurance, thus there is a term for “property and casualty” . But you should be aware casualty and property policies differ in coverage. Property policy is purchased to protect the location of the business while casualty policy is used to insure exactly your business. For example, you lease the premises on the fifth floor, imagine there is a flood. It washes away the first floor but has no influence on the fifth floor. Thus, your property insurance won’t cover the loss to your business as there is not direct damage to your business location. However, if you signed to business interruption insurance you might get coverage for indirect loss made to your business.
As you see, additional protection to your business has enough benefits. Casualty insurance aims to insure you against unpredicted things like:
Flood. Flood is also excluded form traditional policies. In order to protect the business against that natural disaster you have to buy a separate flood insurance.
Government Liability or Political Risk. Not only natural disaster can cause losses to your business, but political situation as well, especially if you have business which is somehow connected with the government and its contracts. In case of unpredicted political change in a country you may have your business protected with political risk insurance policy.
Other things like cyber-fraud, cyber-liability, employee theft or identity theft. The insurance policies of this type are designed in response to current trends.
Very often you may find standard casualty coverage, that goes as a part of business owners’ policy, to be quite worthy, however casualty policies of mentioned types could be necessary for your business operation. Also there are some more types of casualty insurance that could be useful for you and your business. They are:
Employee Theft and Dishonesty policy. It gives you coverage in case of loss caused by employee dishonesty and theft. This type of business insurance is widely spread among organizations where employees handle cash transactions and have access to funds of the company.
Surety Bonds. This casualty coverage is used to insure someone you will complete the deal. If you apply for government job, you will be demanded to sign surety bonds insurance. Surety bonds casualty insurance makes employer be sure you will work till the expiration date of your contract.
Judging from all abovementioned you may see that casualty insurance differs from property insurance. These both types of insurance are designed for different purposes, however both of them are necessary.
