What is liability insurance?

Liability insurance is insurance you buy from an insurance company that protects you if you cause harm or damage to somebody else. For instance, if you have a car accident and you injure somebody, your liability insurance will come into play. If you have a property and you have a leaky faucet that you knew about and it puts water on the floor and somebody slips and falls, your homeowner’s liability insurance would cover that.

Liability insurance is insurance coverage that pays damages for bodily injury as a result of a motor vehicle accident. Bodily injury damages would include medical expenses, lost income, and compensation for pain and suffering.