Property and casualty insurance are commonly used together for different insurance products that are meant to protect the stuffs owned by individuals. For example, house, cars, office spaces, jewellery, clothes, electronic appliances, and even pets. The two types of insurance are so closely related, many people do not know that they are two different products designed for different purposes.
Understanding the differences between property and casualty insurance will make you more informed, and you will be able to address your insurance needs in a better way.
What is Property Insurance?
Property insurance provides coverage for residential and commercial buildings or properties, and their contents, including inventory, clothes, jewellery, electronics, furniture etc. This type of insurance comes into effect in case of loss or damage to the insured property due to a natural or man-made calamity, such as fire, theft, burglary, earthquake, storm, lightning etc.
Property insurance can be availed by anyone who owns a property, be it a house owner, restaurant or café owner, renter, or a factory owner. Common examples of property insurance include homeowner’s insurance and commercial fire insurance.
What is Casualty Insurance?
Casualty insurance is sometimes also known as liability insurance. It does not cover any building or asset. Instead, it protects the policyholder from incurring any legal liabilities in case he/she is sued by a third-party for causing bodily injuries or property damages. The most common type of casualty insurance is commercial general liability insurance.
Unlike the property insurance, casualty insurance is meant mostly for business owners, who can incur legal or financial liabilities towards a third-party in case of mishaps. For example, a customer can get hurt on the business premises and may ask for compensation from the business owner or file a legal complaint against him. Casualty insurance will cover the business owner in such a scenario.
Differences between Property Insurance and Casualty Insurance
By now, the differences between property and casualty insurance must have been clear to you. While property insurance protects your properties and other personal belongings from getting damaged or destroyed due to an unforeseen mishap, casualty insurance covers any legal and financial liability you may incur towards a third-party due to your day-to-day business operations
Another notable difference between the two types of insurance is that property insurance can be availed by anyone who wish to secure his/her personal property or business premises, casualty insurance is mainly meant to help the business owners to safeguard their working capital.
As a businessman, protecting your business’ working capital and your personal assets is of utmost importance. Understanding the differences between property and casualty insurance will enable you to avail better coverage for yourself. You can opt for Package Policies which include both types of coverages to adequately protect your business and get all bases covered.
Additionally, do your research well and compare various options to ensure that you get the best possible coverage for yourself.