What type of risks does general insurance cover?

The correct answer is that general insurance covers non-life risks such as property damage and liability. General insurance is designed to protect individuals and businesses from losses that do not involve death or permanent disability. This broad category includes various types of risks, primarily focused on physical assets and the financial consequences of various liabilities.

For instance, property damage covers risks associated with loss or damage to physical assets, such as buildings and vehicles, due to events like fire, theft, or natural disasters. Liability coverage addresses risks where individuals or businesses may be held responsible for causing harm or injury to others, which can lead to financial compensation claims. This coverage is essential for protecting against unforeseen incidents that could result in significant financial loss.

In contrast, life and health risks are covered under life insurance and health insurance, which specifically deal with mortality and medical expenses. Theft and fraud risks are certainly considered within general insurance, but they represent only a part of the broader array of non-life risks covered. Travel-related insurance is also a subset of general insurance that addresses specific risks associated with travel but does not encompass the wide-ranging nature of general insurance as a whole. Therefore, the comprehensive nature of general insurance is effectively captured through its focus on non-life risks like property damage and liability.