Broker Check

Liability Insurance

The fourth component of risk management is liability management or property & casualty insurance. The most notable types of property & casualty insurance include automobile and homeowners insurance.

Insurance claims have been rising in recent years due to increasingly costly hurricane seasons. Single hurricanes are becoming more and more damaging, and it is estimated that a single storm could cause losses of $500 billion by 2020.

Individual policies make up two-thirds of property & casualty products. This is most likely because most property & casualty products cover individual assets, and coverage varies depending on the individual.

Captive agents control more than half of the property & casualty market with 60% of sales. Independent agents sell about one-third of policies (32%).

Affluent clients require more coverage than average consumers, and their policies are often more complex. The first thing most affluent clients insure is their jewelry. Jewelry is often extremely valuable and a high target among thieves. A lot of wealthier clients also carry coverage for expensive collections, like wine or antiques. And some clients also need to cover multiple homes and yachts. Umbrella liability is available to cover any additional property, and is sold as a rider to basic policies.

Small business owners typically purchase insurance to cover assets, but contrary to individual property & casualty types, business owners must also cover against litigation, failed business attempts, and general liability. Product types include small business property & casualty, fleet auto insurance, workers compensation, errors & omissions (E&O), and commercial general liability.