Small and mid-sized business owners face many financial risks when it comes to building their businesses. As a result, insurance companies have stepped in to reduce some of the risk that business owners are exposed to by offering many different types of insurance policies. Property casualty insurance is just one of the various types of insurance available, but it covers the cost of replacing or repairing property when you or your employees are at fault for damage incurred. In addition it can also cover medical expenses due to bodily injury that has occurred on your property. There are many ways that employees and employers benefit from a well-designed insurance policy.

Property Damage

propProperty casualty insurance is essentially the same as liability insurance for homeowners and other property owners. In this case, it protects you and your employees if you unintentionally cause damage to the property of another person through your business. For instance, if you unknowingly sell a faulty appliance that later catches fire and causes damage to the customer’s home, you may be liable for the damages caused by your appliance. However, property casualty insurance removes that liability and covers the cost of repairing the damage, replacing any damaged goods, and will also cover any legal fees related to the incident.


Bodily Injury

bodilySimilar to homeowner’s liability insurance again, this relates to any type of physical injury that is incurred on your property. If one of your employees mops the floor, but does not put up a sign designating that the floor is wet, you could be responsible if a customer slips and falls. Property casualty insurance steps in to cover any medical bills that come from these types of situations, as well as legal fees and other costs. Employees also benefit from this insurance because they are more likely to sustain injuries on your property than the average customer. This is beneficial for both parties.



What it Doesn’t Cover

Property casualty insurance is very detailed about what does and does not qualify as a claim. It is concerned specifically with injuries and damage related to your business’s property and products themselves. It does not cover things like contract liability, wrongful termination or other unrelated lawsuits. Failing to fulfill a contractual agreement or firing an employee without just cause are illegal and subject to the rules and regulations of your locality. This insurance policy will not aid with legal fees or protect you from any action of these types.

Property casualty insurance is a good way for small businesses to reduce their potential losses in cases where there is unexpected property damage or loss. It protects businesses from financial hardship in instances of accidental injuries caused by either employee negligence or product failure. Both business owners and employees should appreciate the benefits of having a solid property casualty insurance policy to keep them going if they ever do need to pay out for a claim filed against them. However, it is also important to remember that this type of insurance is not an umbrella policy and is only designed to solve two very specific risk factors, so it should be used in combination with a comprehensive insurance policy to provide the best protection.