What does liability insurance protect against?

Liability insurance is designed specifically to protect the insured from the financial consequences of claims made against them for injuries or damages caused to other people or their property. This type of insurance provides coverage against legal fees, medical expenses, and settlements or judgments that may arise from such claims.

In the context of liability coverage, it addresses various situations where the insured may be held legally responsible for harm or damage inflicted upon third parties. For example, if someone is injured in an accident for which the insured is at fault, liability insurance would cover the medical costs and any legal expenses associated with the claim.

This is distinct from other forms of insurance. Claims arising from damage to the insured's own property would typically be covered under property or homeowners insurance, while theft claims relate to different forms of coverage specifically addressing loss due to theft. Claims for loss of income due to property damage would involve business interruption insurance or similar products, rather than liability insurance.