Casualty insurance is a specific instance of risk coverage from your insurer that insurers you against the specified instances of casualty or a general category of casualty.
What exactly is meant by casualty?
Simply put, casualty is the loss or damage incurred in financial terms by an accident for which the insured party is held liable.
Casualty insurance can include:
If you have automobile liability insurance you will have coverage for third party casualty in the case of bodily injury, this coverage extends not just to damage to the individual party and any associated medical expenses they have for treating the damage but also to the losses they incur because of the injury or treatment – which can include the loss of work.
There are more comprehensive casualty options for bodily injury which also cover the insured party and ensure that they have adequate protection in the event of an accident. If you are uncertain as to what level of bodily injury coverage you have, you should review your insurance contract or if you are still uncertain – contact your insurance provider for clarification.
Property damage casualty is usually for 3rd parties only under automobile liability insurance, and covers not just the cost of repairing and remedying any physical damage to property. But also includes the costs of any losses incurred due to this damage. For example if you were to damage a radio station’s transmitter, this might involve paying compensation to advertisers for lost revenue or to the radio station itself for lost revenue/business.
Once again it is possible to access a more comprehensive set of options covering property damage which can limit your liability when it comes to your own property, and in particular your vehicle.
There are various options which protect against various instances of casualty including collision damage through to fire and theft. Normally it is not possible to insure against “force majeure” which is more commonly known as “an act of God”.
Why is this important?
If you do not know which specific instances of casualty you are insured for, you should check your insurance contract. It is important for you to know whether your insurance is sufficient to cover possible eventualities, as in some instances you may be personally liable for compensation which could run into huge dollar amounts. If you feel your coverage is lacking in any way you might be well advised to take out casualty insurance for the gaps.