Which insurance applies to third-party losses?

Casualty insurance is specifically designed to cover third-party losses, which can arise from various liabilities that an insured may face due to their actions or negligence. This type of insurance includes policies such as general liability, workers’ compensation, and auto liability, which address claims made by individuals or entities who are not the insured party but have suffered losses as a result of the insured's activities.

In contrast, property insurance primarily protects the insured's own physical assets against risks like theft or damage, rather than covering liabilities to third parties. Life insurance provides financial support to the beneficiaries after the death of the policyholder, and health insurance focuses on managing medical costs related to the insured's health care needs. Therefore, casualty insurance is the appropriate choice when discussing coverage for third-party claims and liabilities.