Property Casualty Insurance-You Are At A Risk If You Own Property
Did you know that owning property of any kind automatically puts you at risk? Think about it, if you rent (privately or commercially) and something happens then it's the property owner who has to take care of the property. We aren't only talking about the potential destruction of your property, but also a potential liability. Property-casualty insurance is designed to protect you and your property should something bad happen.
The first type we'll discuss is commercial property-casualty insurance. This is simply property insurance that is held by a business owner; whether a sole proprietor, partnership, or corporation. You need to know which policy is best for you. There are a few main types of policies, which may or may not apply to your situation:
General liability insurance covers expenses arising from injury, negligence, or accidents. The key point here is that none of these even have to be your fault and you could be successfully sued. So, having this type of insurances could end up being the most important business decision you make.
There is also commercial property insurance which covers losses due to damage. The damage could be the result of anything from natural disasters to fire, from vandalism to theft. You may never need this insurance, but you'll be glad you have it if you should ever end up needing it.
If you work out of your home then you should get a home business policy. You may have homeowner's or renter's insurance, but they most likely do not cover anything related to a business. So you need to protect yourself with a special kind of property-casualty insurance if you have a home-based business.
The second type we'll discuss is personal property liability insurance. This is meant for average people to protect their private property. Homeowners, renter's and automobile insurance are all a form of property insurance.
Because home and auto insurance is a form of property protection, it's important that you look over any policy carefully before paying any premiums. You need to make sure that the policy has enough coverage to replace what you own and to pay for liability claims. While liability claims are more likely to be filed against businesses, there are people who will sue anybody for anything (again, even if it's not your fault), so it's best to have a healthy amount of liability coverage.
Let's face it, insurance is one of those things you need, but may never use. But at the same time, it seems as though not having it actually increases your risk of something happening. That's not a scientific fact, but think of how many times you have heard of people that never used their insurance, let it lapse, and then had something happen to them the very next day.
Property-casualty insurance is technically optional, but the reality is that you really do need it. The cost of the premium is tiny when you compare it to how much you could potentially lose.