What is Property and Casualty (P&C) Insurance?

Property and casualty (P&C) insurance covers losses and damages to personal and/or business property. It also protects from liability for accidents and injuries that may occur on the insured’s property and is designed to shield assets from financial losses that may result from unexpected events, such as natural disasters, accidents, or theft.

Insurance companies curate their portfolios with both property and casualty insurance coverage offerings. While the types of insurance are a bit different, they are often combined or bundled together into a policy.  

• Property insurance is a type of P&C insurance coverage that makes the insured whole in relation to losses and damages to personal or business property, such as a home, car, or office. Property insurance also provides a safeguard from significant monetary loss if an event occurs with physical damage, injury, or loss of living expenses. 

• Casualty insurance is another type of P&C insurance that covers liability for accidents and injuries that may occur on the policyholder’s property. It is designed to offer protection from financial losses that may result from claims made against the insured by others who were injured on a property. In a business setting, casualty insurance coverage often contributes to worker’s compensation, professional liability (known as Errors & Omissions), and other types of casualty coverage like Employment Practices Liability Insurance (EPLI) in the U.S., and even cyber liability.

P&C insurance typically covers a wide range of losses and damages, including:

• Physical damage to property: This can include damage from vandalism and theft, but also fires, storms, earthquakes, and other natural disasters, where insurers are often found going above and beyond to help. 

• Liability for accidents and injuries: Covered measures may include medical expenses, lost wages, and other damages incurred when someone is injured on a property where the owner is liable. 

• Business interruption protection: Some types of P&C insurance, such as business interruption coverage, can help cover the costs of lost income and other expenses if a business is forced to shut down temporarily due to a covered event.

• Additional living expenses: If someone is unable to live in their home due to damage or catastrophe, P&C insurance may cover the cost of temporary housing, such as a hotel or rental property.

• Custom Needs: P&C insurance policies can be customized to meet the specific needs and risks of an individual or business, allowing policyholders to choose the coverage that best fits their needs.

Customizing property and casualty insurance offerings mean that policyholders can receive significant benefits across areas where otherwise they would be financially responsible to pay for damages or injury.

Benefits include having coverage options for a wide variety of assets and circumstances, including: 

• Cars, motorcycles, boats, all-terrain vehicles (ATVs), and other vehicles.

• Owned residential property and possessions, including single-family homes and condominiums.

• Rentals and leases. 

• Businesses and commercial property. 

• Protection of property from natural disasters, such as: 

  • Fire

  • Wildfire

  • Heat

  • Wind

  • Floods

  • Earthquakes

• Umbrella policies for extra coverage needs.

Learn More: “What Types of Property and Casualty Insurance Are There?”

Without P&C insurance, individuals and businesses could face significant financial hardship in the event of an unexpected loss. For example, if a home is destroyed by a natural disaster and the homeowner does not have insurance, they would have to pay for the repairs or replacement out of pocket. Similarly, if a business owner is sued for damages or injuries caused by their products or services, they could be financially responsible for paying the resulting legal and settlement costs.

P&C insurance can help individuals and businesses manage the financial risks associated with owning property and engaging in activities that have the potential to cause harm to others. It can provide peace of mind and help ensure that policyholders have the financial resources they need to recover from unexpected losses.