CASUALTY INSURANCE

provision against loss to persons and property, covering legal hazards as well as those of accident and sickness. Major classes of casualty insurance include liability, theft, aviation, worker's compensation, credit, and title. Liability insurance contracts may cover liability arising out of the use of an automobile, the operation of a business, professional negligence (malpractice insurance), or the ownership of property. The insurer agrees to pay on behalf of the insured all sums that the insured becomes legally obligated to pay as damages. The insurer also agrees to conduct a court defense of the insured. Theft-insurance contracts cover losses from burglary, robbery, and other theft. Aviation insurance usually covers physical damage to the aircraft and legal liability arising out of its ownership and operation. Worker's compensation insurance, financed by employers' contributions, compensates workers for losses suffered as a result of work-related injuries; compensation may include medical benefits, temporary incapacity benefits, permanent disability benefits, and, in an increasing number of countries, retraining benefits. The numerous forms of credit insurance include coverage of the risk of bad debts from insolvency, death, and disability; the risk of loss of savings from bank failure; and the risk of loss of export credit from commercial or political causes. Title insurance guarantees the purchaser of real estate against loss from undiscovered defects in the title to property purchased.