What does casualty insurance provide coverage for?

Casualty insurance primarily provides coverage for legal liability, which includes personal injury and property damage that an insured individual may be responsible for causing to others. This type of insurance is designed to protect the insured from the financial consequences of legal claims or lawsuits that arise due to their actions or negligence.

For example, if someone is found liable for an injury that occurs on their property, casualty insurance can help cover the legal expenses and any damages awarded in a lawsuit. This coverage is vital in safeguarding individuals or businesses from potentially devastating financial losses resulting from accidents or incidents where they may be held legally responsible.

While other forms of insurance, such as property or health insurance, address different risks – such as protecting against damage to one's own property or covering medical expenses – they do not encompass the legal liability aspect that casualty insurance specifically covers. Thus, focusing on the legal liability provided by casualty insurance clarifies its intended purpose and function in the overall insurance landscape.