Casualty insurance is a broad category coverage insurance which is pretty much different from the commonly heard, life or health insurances. It is focused upon the liability coverage of an individual or a particular organization for their negligence.
It can also be described as a set of various individual insurances that covers the loss of properties, their damages, the medical expenses of the individuals involved with the incident.
This particular insurance is used in various categories of events such as property insurance, fidelity and surety insurance, crime insurance, political risk insurance, earthquake and other natural calamity insurance and also as machinery insurance.
Basic categories of Casualty insurance coverage
There are 3 main categories that come under the coverage of this particular type of insurance and that includes
- Third party insurance
- Accident and health insurance
- Material damage
Third party insurance
Insurance intended for financial protection against the claim raised by third party for a damage caused by the first party.
Here the first party purchases the insurance from the insurance providers or the second party, and is spent for the medical expenses and other damages of the third party. Else this type of insurance can be called as liability insurance.
Accident and health insurance
An extra benefit provided to the employees by insurance provider which cover any type of accidents, health issues or even accidental death comes under the accident and health insurance. In this type of insurance the first party gets the benefits.
Even though the employees are getting the benefits, they will have a slight deduction in their salary for these benefits.
This is simply the physical damage caused by accidents or natural calamities like fire, storms, earthquakes or even burglary resulting in the loss of property and equipment that are insured under a particular policy.
It can cover for the reinstallation of the entire office or building, according to the terms and conditions of the policy.
Benefits of the casualty insurance
According to Ocean harbor casualty insurance company the main beneficiaries of casualty insurance are the first party and the third party. Both the categories will get benefits as per the conditions provided in policy statements.
In case of an accident happened by the mistake of the driver, he is the first party or the person who buys the insurance coverage. He gets the benefits by getting his damaged vehicle repaired.
For a third party, the insurance provider or the second party will provide the medical expenses and health care compensations as per the insurance claim. Thus both of them are getting benefits.
If the coverage is done for an individual’s own car, then the policy no longer comes under the casualty insurance.
Similarly in the case of a fire accident in an office, the insurance provider will cover for the medical expenses and compensations of the victims and they will provide the necessary funds for getting back the office to normal condition.
Casualty insurance has got a list of broad categories of coverage that are applicable in numerous cases and of very high potential. Do check the details before getting one.