What is the focus of casualty insurance?

Casualty insurance is primarily designed to provide coverage for liability, which encompasses legal responsibility for injury or damage to other individuals or their property. This form of insurance plays a critical role in managing risks associated with personal and business activities, ensuring that individuals or entities can protect themselves financially against claims that may arise from accidents, negligence, or other liability situations.

The focus on liability coverage helps safeguard policyholders from potentially significant financial losses. If an insured party is found legally liable for causing harm or damage, casualty insurance assists in covering legal expenses, settlements, or judgments, thereby protecting their assets and financial stability.

In contrast, protection against property loss is more closely associated with property insurance rather than casualty insurance. Financial planning for retirement and investments in building construction do not directly relate to the core functions of casualty insurance. Therefore, the central theme of casualty insurance—liability coverage—is what makes this answer the most accurate choice in the context of the question.