What does casualty insurance cover?

Casualty insurance predominantly focuses on providing coverage related to liability for various damages that an individual or organization may cause to another person or their property. This type of insurance is designed to protect against legal claims arising from accidents, injuries, or negligence that lead to damages.

In practical terms, it covers a broad spectrum of risks, including but not limited to bodily injury, property damage, and legal defense costs associated with lawsuits stemming from such incidents. As a result, individuals or businesses carrying casualty insurance have financial protection against the impact of legal liabilities that could otherwise impose significant costs.

Other options present different types of insurance and coverages that do not fall under the definition of casualty insurance. For instance, personal injury claims are indeed a part of casualty insurance but do not encompass the full extent of what it covers, hence limiting its description. Health care expenses and life and disability benefits pertain to health and life insurance products, which are distinctly separate from casualty insurance. This distinction is crucial for understanding the comprehensive nature of casualty insurance and its role in risk management.