Casualty insurance is a broad category of insurance coverage that primarily encompasses liability coverage, protecting an insured party against loss or liability stemming from accidents, negligence, or other unforeseen events that may cause harm to other individuals or their property. Unlike property insurance, which covers damage to the insured’s own property, casualty insurance is concerned with the legal responsibility that a person or organization might have to others as a result of their actions or inactions.
This type of insurance can take many forms, including but not limited to, vehicle insurance, liability insurance, theft insurance, and workers’ compensation insurance. In essence, it is designed to safeguard an individual or business from the risk that they may be sued and held legally liable for something such as a car accident, injury on one’s premises, or professional error. Casualty insurance can help cover legal costs, medical expenses, and other damages that the policyholder is deemed responsible for.
It is important to note that casualty insurance is often purchased in conjunction with property insurance, as part of a comprehensive policy designed to protect against a wide range of risks. This combined coverage is sometimes referred to as property and casualty insurance.