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What Is Casualty Insurance

Casualty Insurance is difficult to define because of the wide scope of its application. In most general terms, Casualty Insurance is a type of insurance designed to cover losses incurred as a result of an accident. Casualty Insurance takes quite a loose definition because it is not directly connected with any of the typical clear-cut insurance branches, such as Life, Health, Homeowners Insurance or Car Insurance. Normally Casualty Insurance refers to liabilities arising from negligence and unforeseen accidents resulting in casualties. As a rule it covers damages both to property and people.

It is important that Casualty Insurance normally incorporates personal liability which makes it attractive for business owners because it guarantees protection to the employees in case they happen to be injured at work. But when Casualty Insurance is purchased to protect a business or a home, it should be regarded as a supplemental policy because many things you really need may turn out to be uncovered.

Casualty Insurance varies by state. In some states insurance companies include in Casualty Insurance policies coverage against earthquake, legal expenses, political risk, terrorism, workers' compensations and some other branches. A special type of Casualty Insurance bears the title "Fidelity Insurance" or Surety Bonds. It is aimed at protecting people from fraud, i.e. it reimburses you for your losses due to a theft.