What type of protection does liability insurance provide?

Liability insurance primarily offers protection against claims resulting from injuries and damage inflicted on other people or their property. This type of insurance is essential because it covers legal costs and settlements when the insured party is found liable for causing harm. For instance, if a person accidentally injures someone else or damages their property, liability insurance can help cover medical expenses or property repairs that arise from that incident.

Unlike other forms of insurance that may cover specific types of loss, such as property theft or workplace accidents, liability insurance specifically addresses the risks associated with being held legally responsible for harm done to others. This feature makes it crucial for businesses and individuals who want to safeguard themselves from potential lawsuits and the financial repercussions that could follow.