What is the primary purpose of liability insurance?

Liability insurance is designed primarily to provide financial protection against claims that may arise from injuries to other people or damage to their property. This type of insurance helps to cover the costs associated with legal defense, settlements, or judgments when the insured is found liable for causing harm to another party. It is essential for individuals and businesses to manage risks associated with their actions that could lead to financial loss for others.

Choosing this type of coverage is crucial because accidents can happen at any time, and the financial repercussions from lawsuits can be substantial. With liability insurance in place, the insured can have peace of mind knowing they have a safety net to defend against various potential claims, which can range from slip-and-fall accidents to property damage incidents.