Liability insurance covers financial protection for you when you are legally responsible for causing injury or damage to someone else or their property. It typically pays for:
- Injuries you cause to other people
- Damage to other people's property
- Legal expenses related to lawsuits for such injuries or damage
Types of liability insurance exist for vehicles (like car accidents), property (such as injuries or damage occurring on your property), businesses (covering employee injuries or product liability), and personal situations. Important points about liability insurance coverage:
- It protects third parties, not the insured party
- It covers unintentional harm or damage, not intentional acts or criminal behavior
- It helps pay for legal defense costs and settlements or judgments if you are found liable
- It usually does not cover your own injuries or damages to your own property
In personal liability insurance, examples include covering damage you cause to a friend's property, injuries you accidentally cause to others, or legal fees for such claims. In vehicle insurance, it covers injuries or damage you cause while driving. In summary, liability insurance covers claims made against you because of your negligence or accidental harm or damage to others or their property, protecting your financial assets from such claims. It does not cover your own injuries or property damage.
