What does liability insurance provide protection against?

Liability insurance is designed to provide protection against claims resulting from injuries and damage to people or property. This type of insurance typically covers legal costs and payouts for which the insured party is found liable, addressing issues such as bodily injury or property damage that occurs as a result of the insured's actions or negligence.

For example, if someone is injured on your property or you accidentally damage someone else's belongings, liability insurance can help cover the legal expenses and settlements associated with those claims. This is a critical part of risk management for individuals and businesses, as it protects their financial well-being in the event of accidents or unintentional harm caused to others.

The other options focus on specific scenarios that are not covered by liability insurance. Risks associated with natural calamities typically fall under property insurance or specialized disaster coverage. Medical expenses for accidents are generally covered by health insurance or personal injury protection (PIP), rather than liability insurance. Property theft would also not be covered under liability insurance; it is typically addressed by homeowners or renters insurance.