What does liability insurance typically cover?

Liability insurance is designed to provide financial protection against claims resulting from injuries and damages that the policyholder may be legally obligated to pay to others. Its primary purpose is to cover legal liabilities that arise from bodily injury and property damage for which the insured is found responsible.

For instance, if an individual accidentally injures someone else or damages their property, liability insurance will help cover the costs associated with the legal claims made against the insured. This may include medical expenses for the injured party, damages to the property, and legal defense costs.

The other choices do not encompass the full scope of what liability insurance is designed to cover. While personal injuries may sometimes be applicable in certain contexts, liability insurance specifically addresses situations where there is legal responsibility for bodily injury and property damage.