What is Property & Casualty Insurance In Canada?
Are you looking to get insurance for the assets that you own? Are you confused about the different insurance policies on offer? Read this blog to find out more.
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As per a recent study conducted by McKinsey & Company, the insurance industry attributed it to property and Casualty Insurance (also known as P&C Insurance) generated a premium of $1.6 trillion in 2018.
These insurances differ and are available in the market in diverse types. Let us understand them in simple language.
What Is Property Insurance?
The expression “property insurance” is an umbrella term used to represent a series of different insurance products that come under its ambit. Usually, all the insurance products associated with property insurance aim to safeguard your assets, such as home, car, etc.
It helps you buy peace of mind, saves you from financial losses because of any unfortunate event, such as theft, burglary, loss by fire, loss by natural calamities, etc.
Like all insurance products, property insurance also extends financial reimbursement to the policyholders for the losses sustained.
What Are the Different Property Insurance Products in Canada?
The insurance industry is consistently developing, with increased insurance products entering the market. Below is a list of some of the most common property insurance products in Canada:
Homeowner’s Insurance
It is the most bought property insurance product in Canada. It safeguards the homeowners from home-based financial losses, such as damages to the residence, furnishings, and other assets.
In a typical homeowner’s insurance policy, the damages created by the following events cover:
Losses or damage sustained due to
- Explosion
- Fire
- Lightning
- Civil commotion (riots)
- Vandalism
- Theft
Accidental discharge, such as
- Overflow of water from a defective water-pipe
- Steam leakage from defected gas ducts
- Damages from household appliances
- Issues with the fire protection systems, etc.
- Windstorms or hails
Renter’s Insurance
It acts in the same way as a homeowner’s insurance policy. However, the only difference is that it provides insurance coverage for the rented property of an individual.
It compensates the policyholders for all the damages borne by the property owners, letting their single-family homes, apartments, duplexes, townhouses, condominiums, etc.
Commercial Property Insurance
It aims to cover all the losses sustained by commercial property and the various assets because of reasons such as loss by fire, theft, natural disasters, etc.
While determining the premium to be paid regarding commercial property insurance, factors such as occupancy, the location of the commercial property, and the total value of the assets possessed by a commercial property come into play.
Corporate and individual business owners take this insurance to safeguard commercial assets, such as plant and machinery, IT assets, and furniture.
Fire Insurance
As the name suggests, this type of insurance policy provides compensation and safeguards the homeowners from all the likely damages incurred because of fire.
Typical fire insurance provides safety against all events such as explosions, lightning, bursting, etc. The fire causes these losses.
What Is Casualty Insurance?
Like property insurance, the expression “Casualty insurance” also represents an umbrella term covering several insurance products. The primary aim of casualty insurance is to safeguard you financially from all the third-party claims and the legal liabilities that have arisen due to:
- Bodily injuries
and
- Property damage
Are you having difficulties comprehending this concept? Let us understand it through a practical example.
Noah is a qualified solicitor and runs his practice in the Greater Toronto Area. He has employed three workers in his office, helping him perform his legal duties.
The office of Noah is vulnerable to fire due to frequent fluctuations and spikes in the electric current and voltages, making the workplace dangerous for its workers. Despite his repeated attempts, he has failed to make good the challenges.
His insurance agent advises Noah to purchase a casualty insurance policy that will help get compensation for all the losses suffered by his employees while on his office premises.
This coverage will prevent Noah from bearing any medical expenses out of his pocket, as he will get reimbursement for the same from the insurance company.
What Are the Different Casualty Insurance Products in Canada?
Casualty insurance is available in different forms in Canada, which are:
Commercial General Liability
This insurance policy compensates the policyholders if they sustain third-party claims during business operations.
Workmen’s Compensation Insurance
This policy safeguards the employers from all the losses/ damages borne by the employees because of injuries, disabilities (both partial and permanent), accidents, and even deaths while being in employment.
Contaminated Product Insurance
It is a popular insurance product usually purchased by the factories and manufacturing units in the production business. It compensates the policyholder regarding damages sustained due to:
- Adverse publicity of the company’s products
- Malicious tampering with the company’s products
- All the accidental contamination
