Question

Casualty insurance provides coverage primarily for the liability exposure of an individual, business, or organization. What type of casualty insurance covers liability for accidental injury or property damage from either a condition on the premises or operations in progress?

Answer 1

Casualty insurance that provides coverage for liability due to accidental injury or property damage is known as general liability insurance. It protects during normal business operations and premiums are priced to cover the probability of such events for all policyholders.

Step-by-step explanation:

The type of casualty insurance that covers liability for accidental injury or property damage resulting from either a condition on the premises or operations in progress is known as general liability insurance. This insurance is crucial for individuals, businesses, and organizations as it helps to protect against claims that can arise during normal operations. Those who carry general liability insurance pay premiums to an insurance company, which in turn manages a pool of funds to cover any claims made by the insured parties.

General liability insurance is a safeguard against the financial risk of being held accountable for bodily injury or property damage. Examples include a customer slipping on a wet floor in a store, or a contractor causing damage to a client's property while performing a service. The insurance company prices the premiums based on the likelihood of these events occurring among a large group of policyholders, allowing individuals and firms to avoid the full financial burden of any single detrimental event.