What does liability insurance primarily cover?

Liability insurance primarily covers personal injuries and associated claims. This type of insurance is designed to protect individuals and businesses from claims resulting from injuries and damage to others or their property. When someone is found to be at fault for causing bodily harm or property damage, liability coverage can help cover the costs associated with the injured party's medical expenses, lost wages, and other related claims.

Additionally, liability insurance can also cover legal expenses incurred in defending against these claims, which ties into the broader coverage focus on protecting the insured from the financial fallout of unintentional harm they may cause to others. This aspect is essential for ensuring that individuals and businesses can manage risks effectively, which is a crucial component of financial planning and risk management.