If you run a business and are thinking about getting property insurance, you should also consider casualty insurance. Instead of a stand-alone policy, it is usually combined with your property insurance policy, often being referred to as "property and casualty" coverage. It has become more popular in recent years, particularly due to the additional coverage for terrorist attacks and major natural disasters. Here is more information about casualty insurance and why you might need it.
How Does Casualty Insurance Differ From Property Insurance?
Casualty insurance typically covers perils and types of damage or loss that are not covered by your traditional property insurance. A good way to look at it is that casualty covers your business while property insurance covers the location where your business is located. With property insurance, the coverage is for damage to the business structure and contents inside. When you add casualty insurance, you have coverage for business interruptions that are not directly related to things like extreme weather conditions or some disasters.
Why Do You Need Casualty Insurance Coverage?
Casualty coverage is entirely optional, as many businesses purchase property insurance without it. However, keep in mind that there are some limitations. For example, many casualty policies include coverage for terrorist attacks, floods, government liability, and political risks. These types of events are not covered by property insurance policies, and the events can cost you thousands of dollars from your business assets. In addition, casualty insurance often includes additional coverage in the form of bonds, such as surety bonds when signing a contract between you and a client, and employee theft contracts between you and your employees that handle company money.
What Other Coverage Do You Get?
When speaking specifically about what exactly is covered, there is much to understand. By knowing what the policy is actually paying for, you can decide if it is the right option for you. Here are some different things you can expect from your casualty business insurance policy:
Legal fee assistance – If there is an event not covered by property insurance, but covered by casualty insurance, you will have legal fees covered. For example, if there is a major flood in your building and you had a possession of a customer on your business property, they can sue you for damages. These legal fees would be covered.
Medical bills, pain and suffering – In addition, you have coverage from employees or customers that experience a loss or injury as a result of the event. Casualty insurance often includes this additional coverage, while property insurance only covers the business property itself.
Loss of income – The same can be said for a customer or client who is in your building when the event occurs. They might get injured and have to miss time from work, which could result in loss of their income. The policy can help replace some of their income, in addition to helping with your legal costs. Talk to a professional like Donaghy Kempton Insurors for more information.