What is the primary purpose of casualty insurance?

The primary purpose of casualty insurance is to protect individuals and businesses from financial losses that may arise from unforeseen events or liabilities. This type of insurance is designed to provide coverage for various risks, such as bodily injury, property damage, and legal liabilities that result from accidents or other incidents.

By offering financial protection, casualty insurance helps ensure that policyholders can recover from losses without facing significant economic hardship. For example, if a business is sued for negligence resulting in injury to a customer, casualty insurance would cover the legal expenses and any settlement or judgment costs, providing crucial financial support.

This comprehensive coverage is not limited to natural disasters or specific incidents but spans a wide array of potential liabilities. It does not, however, eliminate all risks, as no insurance can completely remove all uncertainties or risks; instead, it mitigates the financial impact of those risks on individuals and businesses.