Casualty refers to losses caused by accident, such as bodily injury or property damage, for which an insurer may owe defense and indemnity.
Coverage role
Casualty can be covered under liability forms, workers compensation provisions, and related commercial lines depending on the policy wording.
Underwriting lens
Casualty risk is priced through frequency/severity expectations:
- Nature of operations.
- Prior loss history.
- Safety systems and controls.
Claims implications
When a casualty occurs, the claims team evaluates duty to defend, liability limits, and policy exclusions before reserving and settlement.
Practical example
A warehouse operator with poor loading controls experiences repeat property-damage accidents. The loss trend can shift underwriting class, premium, and deductible expectations at renewal.