Casualty insurance is a fundamental part of risk management for businesses across every sector. This type of insurance can equip you to deal with various liability scenarios and safeguard your business’ equity. Here is some information about the practical utility and benefits of casualty coverage.
What Does Casualty Insurance Cover?
A casualty insurance plan can address claims arising from virtually any aspect of your company’s operations. Indorsements for professional liability can protect you from lawsuits alleging mistakes or oversights in connection with specialized services that you provide to your customers. In addition, a policy that covers your business’ operating space, for example, can address personal injury claims grounded in premises liability or other forms of negligence.
Workers’ compensation coverage is another example of essential casualty insurance protection for businesses. Participating in a workers’ compensation program may be a legal requirement for doing business in your state.
If you have company-owned vehicles or employees drive within the scope of their regular job duties, you must have coverage consistent with statutory regulations. Proceeds from a commercial auto coverage policy can pay for both property damage and bodily injury.
A Casualty Insurance Plan Can Help You Handle Claims Against Your Business
For many businesses, a lawsuit can be financially and operationally devastating. Even if a claimant’s cause of action lacks merit, the mere cost of defending your company could represent a severe hardship. Furthermore, if you do not have sufficient resources to satisfy a court-ordered award for damages, you may have to liquidate assets or file for bankruptcy. With a casualty insurance plan, you may avoid irreparable financial harm.
Foregoing Casualty Insurance Can Lead To Problems Beyond Liability Exposure
With some types of casualty insurance for businesses, such as workers’ compensation, not having coverage could subject you to regulatory penalties. In addition to having to pay a fee, your operating or professional licenses might be at risk. Likewise, falling below your state’s threshold minimums for commercial auto insurance coverage may carry hefty fines, and a state’s registry of motor vehicles could revoke license plates.
Failing to insure your operating space adequately can have unfortunate financial and legal consequences. If you have a mortgage on your commercial property, the mortgagee may require you to maintain coverage. If you rent your space, a commercial lease might make coverage obligatory and stipulate that you name the property owner as a potential additional insured or interested party. It is also true of any equipment that you lease. Noncompliance with these contractual provisions may be a material breach, giving a party grounds to terminate an agreement.
Letting casualty insurance expire could make it harder to get coverage in the future. Lapses in coverage are a red flag for many insurers, so they might charge you higher rates when you try to reinstate coverage.
Lastly, it is essential to recognize that underinsuring your business could bar you from accessing financial opportunities and hinder your long-term growth. Prospective lenders, financiers, and customers may only work with you if you take the proper steps to manage risk.
About Securance
From our home base in Texas, Securance serves the insurance needs of clients throughout the country and abroad. With 50-plus years as a trusted advisor to businesses, families, and individuals, we help clients safeguard their hard work and step confidently into the future knowing they are well protected.
Contact us today at (713) 977-6606.
