Property and Casualty Insurance is Must-Have for Businesses and High-Wealth Individuals
If you’ve spent any time at all this summer watching the news, it should be painfully obvious why property and casualty insurance is important to your business. Hurricanes and natural disasters seem to be happening more frequently, and the damage totals are well in the billions.
Whether or not you believe climate change has anything to do with this is irrelevant. What is important is that you understand how property and casualty (P&C) insurance can protect you from unexpected losses from things such as accidents, lawsuits and natural disasters.
What is Property and Casualty Insurance?
According to the American Insurance Association, property and casualty (P&C) insurance “provides protection from risk in two basic areas: protection for physical items, such as houses, personal possessions, , commercial buildings, and inventory (property), and protection against legal liability (casualty).”
Although typically bundled together in one policy, let’s look at the coverage of each to help you understand why P&C insurance is a must have for your business.
Commercial Property Insurance
Azcentral.com defines Property insurance as coverage for your buildings and other property such as inventory, equipment, and other physical assets from loss in the event of damage. Accidents, damage from malicious intent, and theft can all be potentially covered by property insurance. Your premium cost will be determined by the amount of coverage and whether you opt for full replacement or a cash value of items at time of loss.
Commercial Casualty Insurance
Casualty insurance on the other hand offers protection from liability against lawsuits from injury, property damage, or negligence caused by the business. Casualty insurance covers injuries to your customers should something happen to them such a slip and fall or being struck by a falling object. Settlement costs, legal expenses, medical bills, and pain and suffering awards can all be covered by casualty insurance.
Property and Casualty Insurance Advice Helps You Manage Personal Risk
Businesses aren’t the only ones exposed to property and casualty risks. In fact, high-wealth individuals are particularly exposed to the risk of property damage and lawsuits.
According to “The Overlooked Gap in Financial Advice,” Oliver Wyman concludes that many affluent individuals are particularly exposed to high levels of risk simply because:
· Lack insurance or coverage entirely
· Buying policies with the wrong features
· Inadequately protected because they received poor advice
The final bullet point illustrates a concerning trend. Many people feel as though they are adequately covered when the truth is that the poor financial advice they’ve received has them exposed and they are unaware of it.
When Wyman surveyed a random sample of affluent families, he discovered families were underinsured for the following reasons:
· Lack of understanding of their risks and exposures —they are unaware of the risks they face, especially in novel and emerging exposure areas, such as cybercrime and social media or online risks.
· Hassle prone prior experience with insurance—they have been burned by poor onboarding, service, or claims processes in prior insurance experiences.
· Little familiarity with insurance products—they have limited knowledge of insurance in general and the specific products they can use to protect themselves.
These all indicate that the right advice from a qualified financial advisor or insurance broker is key in ensuring you have the right property and casualty insurance coverage for yourself or your business. Contact The Cody Group New York today to discuss your coverage and see if we can help manage your risk.