What is Casualty?
Casualty, in the context of insurance, refers to a category of loss or damage that can result from accidents, injuries, or unforeseen incidents. It often applies to both people and property. In personal and business insurance, casualty coverage is crucial for protecting against liability claims arising from bodily injury or property damage to others.
For example, casualty coverage in car insurance can include compensation for injuries sustained by other parties in an accident caused by the insured driver. Similarly, homeowners insurance may include casualty coverage for injuries that occur on the property, such as if a guest is injured by slipping and falling.
Casualty insurance often overlaps with liability insurance, as both deal with compensation for damages or injuries. However, casualty insurance is broader and can apply to various situations, including personal injuries, property loss, and accidents. For businesses, casualty insurance is an essential form of protection against workplace accidents or third-party injuries that could result in costly lawsuits.
In high-risk industries, such as construction, casualty coverage is a key component in managing potential liabilities. Individuals or businesses may face significant financial burdens due to lawsuits or compensation claims without proper coverage.