Property and Casualty Insurance – A Complete Guide for 2021

Property and Casualty Insurance

Protection against loss is critical for everything you do, including running your own business or earning money from a side hustle. The primary tool for mitigating business risks, such as those described by Your Money Geek, is property and casualty insurance.

Different types of property and casualty insurance

There are many insurance policies within the property and casualty insurance realm, each with its own vocabulary. Understanding the different types of property and casualty insurance can limit the number of many causes of catastrophic financial loss. Here, we will talk about the most important types of property and casualty insurance for small businesses.

Businessowners Insurance

Some small businesses buy a package policy, called a business owners policy (BOP), to cover their vehicle, liability, and property exposures. It is similar to the combination of personal auto and homeowners insurance policies. Businesses that don’t need all three types of insurance coverage can buy insurance policies separately.


The vehicle coverage is the same whether bought in a BOP or a separate commercial auto policy. It protects against anything for which the business owner becomes legally liable related to vehicles’ operation covered on the policy.  That is, if an insured driver is in an accident, liability insurance will usually cover the costs to third parties.


Businesses usually face one or more of four types of liability – vehicle, premises and operations, products, and professional. Premises and operations and product liability are parts of both general liability policies and BOPs.


Property insurance protects your property, including buildings and their contents. You can also purchase insurance for just the contents if you don’t own the building. Property coverage protects against a long list of perils, including fire, hurricane, tornado, vandalism, and theft. In many places, you must purchase earthquake or flood coverage separately.


An umbrella policy allows you to increase the limits of liability on all your liability policies at once. An umbrella policy can provide coverage for vehicles, Prem/Ops, and products liability. The limits on the underlying policies must meet certain minimum requirements.

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