What type of insurance covers losses due to injury to persons or damage to others' property?

The type of insurance that specifically covers losses due to injury to persons or damage to others' property is liability insurance. This form of insurance protects the insured from legal costs and payments that arise from claims of negligence or harm inflicted on others. It is essential for safeguarding individuals and businesses against the financial consequences of lawsuits or claims for damages related to personal injuries or property damage.

While casualty insurance is a broader category that includes various forms of insurance designed to protect against losses resulting from accidents or other unforeseen events, liability insurance specifically focuses on legal responsibilities towards third parties. Life insurance provides financial support to beneficiaries upon the insured's death, and health insurance covers medical expenses rather than liability for damages to others. Thus, the correct choice highlights the essential function of liability insurance in addressing losses related to harm or damage caused to others.