Property and casualty (P&C) insurance is a broad category of insurance that covers various risks and losses related to assets and liabilities. Here’s a breakdown of what it encompasses:
Property Insurance:
- Protects your physical assets from damage or loss due to covered perils.
- Types include:
- Homeowners & Renters Insurance: Covers your dwelling, personal belongings, and additional living expenses if temporarily displaced.
- Commercial Property Insurance: Protects businesses’ buildings, equipment, inventory, etc.
- Auto Insurance (physical damage): Covers repair or replacement of your vehicle due to collisions, theft, or other covered events.
- Specialized Property: Like marine insurance, boiler & machinery insurance, etc.
Casualty Insurance (Liability)
- Protects you from financial losses if you’re found legally responsible for causing harm to others or their property.
- Types include:
- Auto Insurance (liability): Pays for bodily injury and property damage you cause to others in an accident.
- General Liability Insurance: Covers lawsuits arising from your business operations (customer injuries, product liability, etc.)
- Professional Liability (E&O): Protects professionals from errors, negligence claims, etc.
- Umbrella Liability: Extra liability coverage above your other policies’ limits.
Why P&C Insurance is Important:
- Protects Assets: Safeguards the things you own: homes, cars, businesses. Unexpected events like fires, storms, or theft can be financially devastating without insurance.
- Manages Liability Risk: Lawsuits can be crippling. Liability insurance covers legal costs and any damages you might owe.
Who Needs P&C Insurance:
- Individuals: Homeowners, renters, and car owners need P&C insurance.
- Businesses: P&C packages are crucial to protect assets, operations, and against liability risks.
- Specific Professions: Many professionals require specialized liability insurance based on their field.