What type of loss does liability insurance typically cover?

Liability insurance primarily covers injuries or damages that the insured may cause to third parties. This means if an individual or entity is held responsible for causing harm to someone else, or for damaging someone else's property, liability insurance provides financial protection against these claims.

This type of insurance is essential for safeguarding one's assets in situations where legal action is taken, as it can cover costs related to legal defense, settlements, or judgments that may arise from such incidents.

Other types of coverage like home thefts, medical expenses for the insured, or vehicle accidents for the insured fall outside the realm of liability insurance, focusing instead on covering direct losses or damages to the insured's property or personal medical expenses.