How is 'casualty insurance' different from 'property insurance'?

Casualty insurance and property insurance serve different purposes and cover distinct types of risks. The definition of casualty insurance encompasses coverage for liability, meaning it protects the insured from legal liabilities arising from injuries or damage caused to others. This includes both personal liability (like bodily injury or property damage) and professional liability (like errors or omissions in professional services). Additionally, casualty insurance can cover loss of income due to events that are covered by the policy.

On the other hand, property insurance primarily focuses on protecting physical assets, such as buildings, equipment, and personal belongings, from risks like fire, theft, or natural disasters. While it can include some forms of liability coverage, particularly in certain policy contexts, its primary aim is to safeguard tangible property rather than dealing with the repercussions of liability claims.

This distinction highlights that the correct answer addresses the broad scope of casualty insurance, which goes beyond just covering physical assets to include liability and income loss, thereby differentiating it clearly from property insurance.