What is the primary purpose of casualty insurance?

The primary purpose of casualty insurance is to protect individuals and businesses from financial loss resulting from injuries, property damage, or liability claims. This type of insurance encompasses various coverage options that can safeguard policyholders against unforeseen events that lead to legal liabilities or damages inflicted upon others. For instance, in the case of a car accident, casualty insurance would cover the costs associated with damages to the other party's vehicle or any medical expenses incurred due to the accident.

Casualty insurance can also include elements like general liability, workers' compensation, and commercial auto insurance, all designed to mitigate risks and ensure financial stability in the face of unexpected incidents. This emphasis on protecting against liabilities is what distinguishes casualty insurance from other types, such as property insurance that may focus solely on covering physical assets. Therefore, the answer accurately reflects the central role of casualty insurance in risk management and financial protection.