What does liability coverage typically provide protection for?

Liability coverage is designed to protect the insured from financial loss when they are legally responsible for causing harm to others. This includes both bodily injury and property damage resulting from an accident where the insured is at fault.

When someone is injured in an accident caused by the insured, liability coverage helps cover medical expenses, lost wages, and other costs associated with the injury. Additionally, if the insured damages someone else's property—such as their vehicle, home, or other possessions—this coverage will also pay for the repair or replacement costs. The essence of liability coverage is to ensure that victims of an insured's actions receive compensation, thereby fulfilling the legal obligations of the insured.

The other choices touch on specific aspects of liability coverage but are incomplete. Focusing solely on bodily injury, property damage only, or injuries to passengers overlooks the full spectrum of protections that liability coverage offers for both bodily injuries and property damage in general.