Property & Casualty Insurance: A Comprehensive Guide for Business Owners


Protecting your business means living in the hypothetical future. What happens if a company car causes an accident? Will your company survive the unexpected expense of defending itself against a civil suit? With the right property & casualty insurance, you don’t have to wonder — you’ll know your insurance company has your back.

What Are the Different Kinds of Property & Casualty Insurance?

There are several types of property & casualty policies; which type you need depends on whether you want to cover personal or commercial properties. For example, homeowners will look for a homeowners’ insurance policy that provides property and casualty coverage for their primary residences.

Property & casualty insurance for businesses only covers items used for commercial purposes. For instance, a property management company may purchase P&C coverage for an apartment building it owns, but the business owners will need to buy personal policies for their own homes.

Companies can also seek coverage on property it rents. Doing so protects the business whether or not the landlord has insurance.

You should also consider property & casualty insurance for commercially owned vehicles. If your employee was operating the car for business purposes at the time of the accident, you could be liable for property damage and injuries.

How Does P&C Insurance Work?

While often sold together, property and casualty actually describe two different kinds of coverage. Insurance companies pair them because they’re two sides of the same coin.

Casualty insurance comes into play when damage or injury involves your property. For instance, if you own a grocery store, and a customer breaks a leg slipping on a puddle in the middle of an aisle, your casualty coverage would pay for the following:

  • Third-party medical expenses
  • Legal fees
  • Settlement costs

On the other hand, property coverage keeps you from paying out of pocket for the replacement or repair of company assets such as buildings, equipment, and vehicles. Of course, it’s essential to note that insurance only covers specific circumstances. If your property sustains damage as a result of criminal activity or lack of maintenance, the company will likely deny your claim. However, property & casualty insurance usually covers the following:

  • Damage from third-party vehicles or aircraft
  • Vandalism or theft
  • Lightning, windstorms, and hail
  • Fire and smoke

Who Needs Property & Casualty Insurance?

Ideally, every business should have P&C coverage. Some policies, such as auto insurance, are legally required. Failure to comply not only leaves your company footing the entire bill but may also come with fines.

Depending on your industry, you may also have to maintain workers’ compensation. This policy covers expenses for employees injured on the job:

  • Death and funeral benefits
  • Rehabilitation and medical benefits
  • Disability benefits
  • Partial income replacement

Even if you don’t have a legal obligation, having a workers’ compensation policy can help your business. For example, you can attract skilled talent in a dangerous industry, as employees know they and their families will receive financial compensation should something happen on-site.

Small businesses can significantly benefit from property & casualty insurance, as they don’t have the same resources as larger companies. A national corporation can shrug off a major lawsuit, but a small business may go under due to costs and damage to its reputation.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.