Casualty

To gain competitive advantage, organizations are crafting long-term, sustainable casualty insurance programs that offer protection from the unexpected.

An increasingly litigious environment, larger punitive awards, rising workers’ compensation costs, complex global regulations, these trends can translate into greater liability risks that businesses must successfully manage.

Marsh’s Casualty Practice aims to address these challenges through MPACTSM, our integrated approach to reducing all elements of casualty-related total cost of risk (TCOR). We can help you break down every component of your TCOR, identify and prioritize cost-reduction opportunities, and optimize your casualty insurance program.

Our casualty teams, supported by specialists in workers’ compensation, international casualty, excess liability, and other areas can serve as your advocates, capitalizing on years of experience to tailor a customized risk management solution to meet your unique needs. And with our proprietary benchmarking and analytic tools, we can help you to optimize purchase decisions, determine appropriate retentions and limits, allocate resources strategically, and reduce costs.

The result: Lower total cost of risk, less volatility in insurance pricing, better claims recovery, compliance with international regulations, and protection from the unexpected.

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Casualty insurance is an umbrella term to describe the coverage provided by a number of different types of insurance, ranging from vehicle insurance to workers’ compensation (where applicable) and from liquor liability to product liability. Because the category of casualty insurance is so vast, it's often confusing to understand. The underlying premise is that most types of insurance policies covering loss or damage to third-party property, as well as liability to other individuals, will fall under the description of casualty insurance.

Examples of things covered by casualty insurance would be third-party property loss (e.g., as the result of burglary), vehicle damage or total loss, workers’ compensation (where applicable), and liability claims against companies. These liability claims might include anything from slip-and-fall accidents in a store or restaurant to claims of damage or injury resulting from use of a product.

Because casualty risk can be managed by many types of insurance, it would be challenging to try to name every type of coverage.

Almost any adult and any business needs some form of casualty insurance. Most countries require automobile owners to have some form of insurance, if not for their own vehicle, then at least for liability for damages or injury caused to others in the event of an accident. Business owners need casualty insurance, especially those who have a physical presence such as a store or office, have employees working for them, or produce a product.

The total cost of risk (TCOR) is defined in simple terms as the comprehensive cost of managing risks and incurred losses. Factors contributing to TCOR include any aspect of an organization’s operations that is related to its risks, from administrative costs to the expenses involved with developing and implementing a risk control strategy, as well as any uninsured losses.

There are five broad categories that comprise TCOR:

Premium: The cost involved with transferring risk to an insurer, including fees.
Losses: All losses for which a claim is made, including the claim deductibles.
Claims administration: The cost of managing risk, both internally and externally.
Cost of collateral: The cost of securing your obligations under deductible programs.
Implied risk: The exposure to volatility that you may not have recognized in your current experience.

Casualty