What categories do the risks people typically face fall into?

The correct categorization of risks that individuals typically face includes personal, property, and liability risks. Personal risks pertain to the threats that can affect an individual's well-being, such as health issues, accidents, or other personal hardships. Property risks involve the potential for loss or damage to tangible assets, such as homes, vehicles, and personal belongings. Liability risks refer to the financial exposure individuals may have in the event that they cause injury or damage to others, potentially leading to legal claims against them.

This framework provides a comprehensive understanding of the various dimensions of risks people encounter in their daily lives. It highlights how the protection offered by insurance can address each of these categories effectively. Understanding these distinctions is crucial for anyone involved in the insurance industry, as it helps in assessing client needs and recommending appropriate coverage options.