Liability Coverage

Liability coverage is a type of insurance designed to protect the insured from financial loss if they are found legally responsible for causing injury or property damage to a third party. It typically covers the costs associated with claims or lawsuits brought by others who suffer harm due to the insured's actions or negligence.

In the context of auto insurance, liability coverage pays for:

• Bodily injury: Medical expenses, lost wages, pain and suffering, and legal fees for others injured in an accident caused by the insured.
• Property damage: Repairs or replacement of another person's property damaged in an accident, including vehicles, buildings, or other structures, as well as related legal fees.

Liability coverage does not pay for the insured's own injuries or vehicle damage; separate coverages are needed for those risks.

Liability insurance is often mandatory by law for drivers and is a fundamental part of many insurance policies, including home and business insurance. It is sometimes called third-party insurance because it protects against claims made by third parties, not the insured themselves.

In summary, liability coverage helps cover the financial consequences when the insured is legally responsible for harm to others or their property, providing both compensation to the injured party and legal defense for the insured.