3 Basic Types of Casualty and property Insurance for Your Business

Basic Types of Casualty and property Insurance for Your Business

Property and Casualty insurance basics

Today, this segment of the insurance industry provides protection from risk in two basic areas: protection for physical items, such as houses, personal possessions, cars, com- metrical buildings, and inventory (property), and protection against legal liability (casualty).

What is ‘Casualty Insurance’

Casualty insurance is a broad category of coverage against loss of property, damage or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, theft insurance and elevator insurance.

There are many other types of insurance that have traditionally been considered casualty insurance, such as:

  • Aviation
  • Auto
  • Workers’ compensation
  • Surety bonds

When it comes to choosing business insurance, it can be difficult to keep track of what you need and what you don’t. Chances are you probably have some type of property insurance, which helps to cover you in the event of any damaged or lost property. However, have you considered casualty insurance as well?

The main difference between the two is that casualty insurance protects you by covering losses that result from direct accidents, whereas property insurance covers losses that result from events, such as theft. There are three main types of casualty insurance:

  1. Vehicle Insurance – If your business involves vehicles, this is a must. In most states, vehicle insurance is not only suggested, it’s required by law. Depending on the policy, vehicle insurance can cover personal injuries, property damage, bodily injury liability, collision and uninsured motorist coverage. You can also get a comprehensive coverage policy that covers events such as flooding, theft, fires and more.
  2. Flood Insurance– In the aftermath of Hurricane Sandy, it is very important that you consider getting flood insurance for your business. This will help cover the costs of the building as well as everything inside of it. Flood insurance is essential if your business is to recover from a natural disaster like Sandy.
  3. Liability Insurance– Liability insurance will help protect you from a number of risks, like being sued for unintentionally harming someone or for negligence. There are three types of liability insurance:
  • General liability, which covers libel, slander and any injuries that occurred on your property
  • Professional liability, which covers mistakes that are made on the job
  • Product liability, which helps protect your business against lawsuits and helps cover recalls in the event that one of your products was manufactured with a defect that caused harm to an individual.

Different types of P & C insurance coverage

Workers’ Compensation

Insurance covering the cost of medical care and compensation for lost income to employees who suffer an occupational disease or injury while at work. Each state has different workers’ compensation laws and requirements.

Business Owner’s Policy (BOP)

Bundles property and general liability coverage into a single policy. It enables you to purchase a broad range of coverage at a cost that is typically lower than if you purchased each form of coverage separately. BOP coverage can be tailored to particular business needs.

Commercial Auto

Includes liability and physical damage insurance that covers vehicles owned by your company – and includes coverage for you in the event your employees use their personal vehicles on company business.

Excess Insurance

Provides additional financial coverage for liability claims beyond the limits of a specified limit.
If purchased, check with an insurance professional that all the underlying liability limits are adequate.

Umbrella Policy

Provides additional financial coverage for liability claims beyond the limits of business, auto, general liability, or employer’s liability insurance policies.
Tip: An umbrella policy may be more expensive than excess insurance coverage. Make sure you speak to a licensed agent for advice.

State Disability

Provides temporary cash benefits to an eligible wage earner disabled by illness or injury that occurs outside of work, or because the wage earner becomes disabled due to pregnancy. For example, if you are a New York-based employer, you are required to provide disability benefits to all eligible employees. Disability benefits include cash payments only – employers and insurance carriers are not responsible for medical care.

These are the top 10 property/casualty insurance companies in the US

The nation’s top 10 property/casualty insurance companies claim more than two-thirds of the total market and wrote more than $588 billion in premium in 2017 – up 3.4% from the year previous, according to new data from the National Association of Insurance Commissioners.

The 25 biggest property/casualty insurers, by direct premiums written and market share, are:

1. State Farm 
Direct Premiums Written: $59.361 billion
Market Share: 10.09%

2. Allstate
Direct Premiums Written: $30.18billion
Market Share: 5.13%

3. Berkshire Hathaway 
Direct Premiums Written: $29.967 billion
Market Share: 5.09%

4. Liberty Mutual
Direct Premiums Written: $29.848 billion
Market Share: 5.07%

5. Travelers 
Direct Premiums Written: $23.2 billion
Market Share: 3.94%

6. Progressive
Direct Premiums Written: $21.346 billion
Market Share: 3.63%

7. Nationwide
Direct Premiums Written: $19.577 billion
Market Share: 3.33%

8. Farmers
Direct Premiums Written: $19.05 billion
Market Share: 3.24%

9. AIG
Direct Premiums Written: $18.997 billion
Market Share: 3.23%

10. USAA
Direct Premiums Written: $16.744 billion
Market Share: 2.85%