What is 'natural catastrophe insurance' designed to protect against?

Natural catastrophe insurance is specifically designed to protect against losses caused by natural disasters, such as floods, earthquakes, hurricanes, and other significant environmental events. This type of insurance provides financial coverage for property damage, business interruption, and other impacts that arise when natural disasters occur.

The focus of this insurance is to enable individuals and businesses to recover financially from the losses sustained due to these catastrophic events, ensuring that they can rebuild and restore their lives or operations. It plays a critical role in risk management strategies for property owners and businesses located in areas prone to such hazards.

The other options do not capture the primary intent of natural catastrophe insurance. While injuries during disasters are important, they fall under personal injury or health insurance. Habitat destruction relates more to environmental policies rather than insurance. General liability in construction projects pertains to a different aspect of risk management, focusing on responsibilities and legal protections within the construction industry rather than the specific damages caused by natural disasters.