What does liability insurance protect against?

Liability insurance is designed to provide protection against claims resulting from injuries or damages that the insured party may cause to others. This coverage typically extends to bodily injuries, property damage, and legal costs arising from lawsuits brought by third parties. The primary purpose of liability insurance is to safeguard the policyholder from financial loss that could occur if they are found legally responsible for harming someone else or their property.

By covering the costs associated with these claims, such as medical expenses and legal fees, liability insurance helps ensure that individuals or businesses can meet their obligations to compensate those affected, thus promoting financial stability and peace of mind.

The other options refer to different types of risks and coverage. Loss of future income is typically related to disability insurance or income protection, property theft falls under property insurance or crime insurance, and natural disasters would generally be covered by specialized insurance policies like homeowners insurance, not liability insurance.