Casualty insurance protects policyholders against legal liability from accidental injury or damage claims made by third parties.
Coverage structure
Coverage can include duty to defend, indemnity limits, deductibles, and exclusions. The wording controls when the insurer is obligated to step in and when claims are denied.
Underwriting and policy controls
Underwriters evaluate incident frequency, safety posture, contractual obligations, and historic loss trends. These factors inform rate class, endorsements, and retentions.
Claims mechanics
Loss handling for casualty policies begins with allegation coverage review:
- Is there an actionable injury or damage event?
- Did coverage attach before the event date?
- Are exclusions triggered (for example, intentional conduct)?
Practical example
Two contractors hold similar limits, but one has lower safety compliance scores and repeated incident reports. Its casualty policy likely carries stricter terms or higher premium than the cleaner-loss account.