LIABILITY INSURANCE
Casualty insurance definition
Casualty insurance is a category of non-life insurance that primarily covers personal and/or property liability risks such as employers’ liability, environmental liability, and product liability.
In practice, this term refers to insurance policies that are primarily concerned with the liability classes, such as employers’ liability, environmental liability and product liability. The term is used to distinguish these classes from property insurance. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in liability insurance, claims handling and policy wording. It helps assess legal responsibility, claim response and protection against third-party or employee claims. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Casualty insurance is closely related to liability insurance, employers’ liability, product liability and professional liability. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
Example of casualty insurance
A company faces claims alleging injury or property damage caused by its operations. Casualty insurance may provide liability protection depending on the policy wording.