What is the purpose of casualty insurance?

Casualty insurance is actually a catch-all term for a number of diverse coverages. The common thread that binds these various lines is that they are all concerned with losses caused by injuries. Casualty insurance helps manage the cost of legal liability imposed for injury or damage to the property of others. Many of these coverages are compulsory policies such as workers compensation or auto liability. The overarching principle behind all casualty coverages is the financial compensation to individuals, or the general public, for damages arising from injury caused by negligence.

Casualty insurance is composed of the following coverages:

  • Workers compensation and employers liability
  • General and products liability
  • Automobile liability and physical damage
  • Umbrella and excess liability
  • Product recall and product contamination