Insurance Broker Certification Practice Exam 2025 – All-in-One Study Resource

Casualty insurance primarily focuses on the risk of loss and damage that can occur to people and property, often encompassing liability coverage as well. This type of insurance is designed to protect individuals and businesses from the financial repercussions of accidents, injuries, and other unforeseen events. It’s concerned with the liabilities that arise from the actions of individuals or organizations, including the potential for claims made by third parties following such events.

While some options may appear related, they fall under more specific categories. For instance, homeowner's insurance is a specific type of property insurance that covers specific perils related to a residence, and key man insurance policies are designed to protect businesses from the financial impact of losing a key employee. Investment risk pertains to financial markets and asset management rather than insurance. Hence, the focus on loss and damage of property is what characterizes casualty insurance most accurately.