What is casualty insurance? Definition and meaning
Casualty insurance broadly encompasses liability coverages of an individual or organization.
Casualty insurance is a contract between an insurance company and a customer in which the insurer agrees to cover losses relating to the damage of a customer’s particular asset in exchange for a premium.
Cambridge Business English Dictionary defines casualty insurance as: “a type of insurance that will pay money if a company or its product is responsible for someone being injured or killed, or for something being damaged.”
Examples of casualty insurance
There are many different types of casualty insurance. Some of the most common types include:
- Homeowner’s insurance – covers losses related to property.
- Auto insurance – covers losses related to automobile accidents
- Landlord’s insurance – covers losses of rental property.
- Theft insurance – covers losses resulting from theft.
- Liability insurance – protects the insured if they are sued for claims that come within the coverage of the insurance policy.
- Credit – insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured. A debtor is the party that owes money.