Why Purchase Property and Casualty Insurance?

insurance continuing educationProperty insurance provides protection against most risks to property, such as fire, theft, and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance. When people   finance a home with a mortgage, their lenders most likely will require them to have home insurance coverage to protect the home in case of damage cause by unforeseen circumstances, such as fires or natural disasters.

Just as people can purchase property insurance to protect themselves from financial loss if their property is damaged, they can purchase liability insurance to protect them from financial loss if they become legally liable for injury to another or damage to another’s property. Liability insurance policies cover both legal costs and any legal payouts up to the policy limits for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.

Commercial Property Insurance

Assume your client owns a business. Commercial property insurance protects the things the business needs to run. It can pay to repair or replace business property if it’s stolen, damaged, or destroyed in a fire or natural disaster. Every business is different so the insurance needs of every business are different. Most policies will cover:

  • Office space owned by your business
  • Fixtures
  • Furniture
  • Inventory
  • Supplies
  • Equipment

Commercial Liability Insurance

If you clients have a successful business, they probably think they have great customers. Their customers love their products and their service and would never sue them if something goes wrong, right? Well, assume a customer slips on some tracked-in rainwater and breaks his leg. The doctor’s bills and time off work add up fast, so the customer sues to recoup his losses. Without proper insurance, your clients might find themselves paying hefty legal fees to defend themselves.

Casualty insurance is mainly liability coverage for an individual or organization for negligent acts or omissions. Commercial liability policies protect policyholders against financial responsibility for injury or property damage resulting from a policyholder’s premises, products, services, or other operations.

If your clients have employees, there are types of insurance that their business is legally obligated to obtain, including, in most states, workers’ compensation insurance. Although the payments are usually modest, workers’ compensation insurance covers:

  • medical care from the injury or illness;
  • replacement income;
  • costs for retraining;
  • compensation for any permanent injuries;
  • benefits to survivors of workers who are killed on the job.

An umbrella liability policy can be a cost-effective way to add a layer of protection to existing policies. A single umbrella policy allows a business to increase liability coverage for casualty, workers’ compensation, and auto liability policies without increasing the liability component of each individual policy. Businesses that primarily provide professional services — architects, engineers, accountants and technology service professionals — also should consider professional liability coverage. Professional liability protects the business against lawsuits related to financial loss caused by services provided.

If your clients don’t have property and casualty insurance, they’re leaving themselves and/or their business open to potential loss. Want to know more about property and casualty insurance? Check out property and casualty insurance continuing education classes.

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