What is a common characteristic of casualty insurance?

Casualty insurance is designed specifically to provide protection against liability for injuries to others and damage to their property. This type of insurance covers the insured's legal obligations arising from incidents like accidents that harm third parties. A key aspect of casualty insurance is that it focuses on liability rather than just protecting personal property or offering investment opportunities.

This characteristic is essential as it serves to safeguard individuals and businesses from significant financial loss that could arise from lawsuits and claims filed by others due to injuries or damages for which they are responsible. Casualty insurance encompasses various forms, including general liability, workers' compensation, and professional liability insurance, all aimed at mitigating risk related to injuries or damages incurred by others.