What is the difference between liability insurance and property insurance?

Liability insurance, a core part of casualty coverage, protects the insured against claims that they are legally responsible for causing bodily injury or property damage to a third party — paying both the damages owed (up to policy limits) and the cost of legal defense. Property insurance, by contrast, covers physical damage to the insured's own property. Many policies (like auto and homeowners) combine both. The key distinction is whose loss is covered: liability covers harm the insured causes to others, while property covers the insured's own property. Understanding this fundamental difference is essential casualty insurance content.