Definition of Casualty insurance:
Insurance that covers the legal responsibility for losses stemming from damage to anothers property or an injury to someones person.
Just as you can purchase property insurance to protect yourself from financial loss, liability insurance protects you from financial loss if you become legally liable for injury to another or damage to property. To be legally liable, one must have demonstrated negligence—the failure to use proper care in personal actions. If negligence results in harm to another, the offending party is liable for resulting damages. People in the insurance industry often call liability losses third-party losses. The insured is the first party. The insurance company is the second party. The person to whom the insured is liable for damages is the third party.
Casualty insurance is a broad category of insurance coverage for individuals, employers, and businesses against loss of property, damage, or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, and theft insurance. Liability losses are losses that occur as a result of the insured’s interactions with others or their property. For homeowners or car owners, it's important to have casualty insurance as damage can end up being a large expense. In addition to auto and liability insurance, casualty insurance is an umbrella term traditionally used to describe many other types of insurance, including aviation, workers' compensation, and surety bonds.
How to use Casualty insurance in a sentence?
- One essential casualty insurance that businesses should have is workers' compensation.
- Casualty insurance includes vehicle, liability, and theft insurance.
- Just as you can purchase property insurance to protect yourself from financial loss, liability insurance protects you from financial loss if you become legally liable for injury to another or damage to property.
Meaning of Casualty insurance & Casualty insurance Definition