What does liability insurance generally cover?

Liability insurance primarily covers legal claims made against the insured for bodily injury or property damage suffered by others due to the insured's actions or negligence. This type of insurance provides financial protection by covering the costs associated with legal defense, settlements, or judgments that arise from such claims. The focus of liability insurance is to protect the insured from the financial burden that can arise when they are found legally responsible for causing harm to another person or damaging someone else's property.

The other options do not accurately reflect the core purpose of liability insurance. For instance, medical expenses for the insured typically fall under health insurance or personal injury protection, rather than liability coverage. Damage to personal property of the insured is usually covered by homeowners or renters insurance, not liability insurance. Lastly, loss of income due to theft would be addressed by specific crime or theft insurance policies, rather than liability coverage. Understanding this distinction is vital for comprehending the different types of insurance and the protections they offer.