Casualty insurance is primarily designed to cover liability risks, providing financial protection in the event that an insured party is found responsible for causing harm to another person or their property. This type of insurance plays a significant role in safeguarding individuals and businesses from the costs associated with lawsuits and legal claims that can arise from accidents, negligence, or other unforeseen incidents.
Liability coverage under casualty insurance can include various forms, such as general liability, professional liability, and product liability. This broad scope allows the insured to manage the financial risks related to their actions or products, ensuring they can cover medical expenses, legal fees, and other related costs if they are held liable.
The other options represent different types of coverage that do not fall under the traditional definition of casualty insurance. Insurance for personal property pertains to coverage against damage to physical assets rather than liability. Coverage that protects against theft is also specific to property, focusing on loss rather than liability exposure. Lastly, business interruption insurance deals with the potential loss of income due to disruptions in operations, which is distinct from liability coverage. Thus, liability insurance under casualty insurance is the correct designation in this context.