What is a common risk covered by casualty insurance?

Casualty insurance primarily focuses on protecting individuals and businesses from legal liability for damages caused to others. A common risk covered under this type of insurance is bodily injury due to negligence. This coverage applies when a policyholder's actions or lack of actions result in harm to another person, whether it occurs in a personal, professional, or public setting.

For instance, if someone is injured on a property due to unsafe conditions, the property owner could be held liable. Casualty insurance would cover the costs associated with legal defense and any compensation awarded to the injured party. This demonstrates how casualty insurance plays a crucial role in managing risks tied to personal liability, ensuring that individuals and organizations can mitigate the financial impacts of such events.

The other options reflect risks that fall under different insurance categories. Property theft and loss of personal belongings are generally covered by property insurance, and natural disasters typically fall under specific types of property insurance or catastrophe insurance policies. Thus, while those options are relevant to the larger framework of insurance coverage, they do not pertain to the specific focus of casualty insurance.