Commercial Casualty Insurance
Commercial casualty insurance is an umbrella term for any type of insurance that covers damage caused by your business, including health care costs, lawsuits, and damage to third-party property. Many, but not all, types of commercial casualty insurance can be categorized as “liability” insurance.
Commercial casualty insurance comes into play any time your business causes injury or harm to a third party, including clients, customers, and employees. It could cover incidents as diverse as a customer injuring herself after slipping on a wet floor, a patient suing a physician for a mistaken diagnosis, an employee developing a repetitive strain injury, or a delivery driver causing a motor vehicle accident, to name just a few examples.
Your commercial casualty insurance needs are specific to your industry and type of business. In other words, not all businesses require the same type of casualty insurance. An independent insurance agent can help you assess the types of risks your business faces and help you determine which types of commercial casualty insurance are appropriate.
What is the Difference Between Casualty Insurance and Property Insurance?
Some types of casualty insurance—such as workers’ compensation insurance—are stand-alone policies. In many cases, however, a bundled insurance policy includes casualty insurance along with other types of coverage.
Commercial property insurance, for example, usually includes two different types of coverage: casualty insurance and property insurance. However, the coverages this type of policy offers are not interchangeable and offer very different types of financial protection.
Property protection offers your business financial protection against damage caused to the property itself, including office space, inventory, equipment and tools, records, etc. This part of the insurance policy kicks in when your property incurs damage from fire, theft, vandalism, natural disasters, or other causes depending on the limits of your policy.
Common Types of Commercial Casualty Insurance
The most common types of commercial casualty insurance include:
- General liability insurance
- Errors and omissions insurance (also called professional liability insurance or medical malpractice insurance), can include management liability insurance and directors’ and officers’ liability (D&O) insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Cyber liability insurance
Some less common types of commercial casualty insurance include expanded or specialized coverages to extend your financial protection beyond what most policies cover. Examples include:
- Employers’ liability insurance: expands the protections offered by traditional workers’ comp policies
- Excess liability: covers claims that exceed the limits of basic casualty insurance policies
- Foreign casualty insurance: offers protection against damages to third parties outside the United States
- Specialty coverages: some industries require casualty insurance that is unique to their industry and type of business
Does My Business Need Commercial Casualty Insurance?
The short answer to this question is yes, almost every business needs some type of casualty insurance protection.
However, not every business requires every type of commercial casualty insurance. The type or types of commercial casualty coverage your business needs will depend specifically on your industry and clientele.
It is important to note that some types of casualty insurance are required by law (in most states). Most states, for example, require businesses with a certain number of employees—that number can be as low as one, depending on the industry—to carry workers’ compensation insurance. Most states also require commercial auto insurance for any business that owns or operates any type of motor vehicle.
If you are unsure what types of commercial casualty insurance are appropriate for your business, contact your insurance agent for assistance. An independent insurance agent can help you determine the specific types of risk your business faces, and the levels of coverage you need to offer you financial protection against lawsuits and damages.
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