What type of risks does casualty insurance primarily cover?

Casualty insurance primarily covers liability risks, which include bodily injury and property damage. This type of insurance is designed to protect individuals and businesses against legal liabilities that may arise from injuries or damages to third parties resulting from their actions or negligence. For instance, if a person or business is found responsible for causing an accident that injures another person or damages someone else's property, casualty insurance would provide coverage for the resulting claims and legal expenses.

The focus on liability means that this type of insurance addresses situations where the policyholder might be held legally liable for damages. This includes various scenarios, such as slips and falls on the insured's premises, professional errors that lead to damages, and any other circumstances where someone could take legal action against the insured.

In contrast, the other options involve different types of coverage. Property theft and damage are usually covered under property insurance policies rather than casualty insurance. Health-related claims fall under health insurance and not casualty. Finally, while impact damage to vehicles might be covered under auto insurance policies, it does not specifically relate to the liability focus of casualty insurance. Hence, casualty insurance is specifically concerned with liability risks, making it a crucial aspect of protecting against lawsuits and claims for damages.