Casualty

What Does Casualty Mean?

A casualty refers to damage or loss to a person or property resulting from an accident. Various insurance policies are available to cover the losses incurred in such situations.

Insuranceopedia Explains Casualty

Casualty insurance can refer to various types of coverage, such as employee insurance and property casualty insurance. Many large organizations have an employee casualty policy that covers legal and related expenses in the event of an error or omission by their employees. This type of coverage is typically purchased as professional liability insurance, which pays defense costs and settlements when a worker’s mistake causes financial harm to a client. Property casualty insurance provides protection against financial losses incurred by a third party or damage to their belongings. Most businesses get this kind of third-party protection through a general liability insurance policy, which pays for bodily injury and property damage claims brought by people outside the company. This type of insurance is often considered “umbrella insurance” because it covers a wide range of damages. When standard liability limits aren’t high enough for a large claim, businesses often add a commercial umbrella insurance policy to extend those limits.