What kind of coverage does liability insurance provide?

Liability insurance provides coverage primarily for unintentional torts involving negligence. This means that if someone is found liable for causing harm to another person or their property without intending to do so, liability insurance can help cover the costs associated with that harm. This includes legal fees, medical expenses, and any settlements or judgments against the insured party.

Liability insurance is designed to protect individuals and businesses from financial losses due to these types of claims. It does not cover intentional acts, which implies that the insured consciously meant to cause harm, nor does it focus solely on property damage or criminal actions, which are governed under different types of insurance and legal frameworks. Understanding this helps to clarify the specific protective role that liability insurance plays in mitigating risk associated with everyday actions and interactions.