Casualty Event
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A Casualty Event is an unexpected incident that results in significant loss often due to unforeseen circumstances.
- Context:
- It can range from being a Natural Disaster Casualty Event to being a Human-Caused Casualty Event to being an System Failure Casualty Event.
- It can range from being a Significant Physical Damage Casualty Event to being a Loss of Life Casualty Event to being an Significant Financial Loss Casualty Event.
- It can trigger the activation of insurance policies.
- It can be referenced in a Casualty-Related Provisions (within casualty-related clauses).
- It can (sometimes) necessitate emergency response efforts, including evacuation, rescue operations, and disaster relief.
- It can (sometimes) result in legal actions, particularly when there is a dispute over liability or coverage.
- ...
- Example(s):
- A Large-Scale Hurricane which can cause widespread flooding and destruction.
- A Terrorist Attacks which can result in significant loss of life.
- An Industrial Disaster which ...
- A Large-Scale Earthquake causes extensive damage and even loss of life.
- A Pandemic, which has global impact on health, economies, and daily life.
- A Burst Water Pipe within a leased property, causing water damage to floors, walls, and potentially tenant belongings.
- A Kitchen Fire in a leased residential unit, resulting from cooking activities, leading to smoke damage and potential structural damage.
- ...
- Counter-Example(s):
- a Forece Majeure Event.
- A planned demolition of a building, which is a controlled event and not considered a casualty event.
- Routine maintenance or wear and tear on property, which does not result from sudden, unexpected events.
- A staged fire drill or emergency exercise, which is a planned activity designed to prepare for a casualty event.
- Voluntary cessation of business operations, not triggered by any external casualty event.
- A localized power outage due to scheduled maintenance by the utility company.
- See: Disaster Response, Insurance Claim, Liability, Property Damage, Risk Management, Obligation to Repair Provision