what liability insurance covers

Liability insurance generally covers costs you become legally responsible for when you accidentally injure someone else or damage their property, plus associated legal defense expenses, up to your policy limits.

What liability insurance covers

• Bodily injury to others : Medical bills, rehabilitation, and sometimes lost wages for people you accidentally injure (for example, in a car crash where you are at fault or in your business premises).

• Property damage to others: Repair or replacement of other people’s cars, buildings, fences, mailboxes, equipment, or belongings you accidentally damage.

• Legal defense costs: Lawyer fees, court costs, and settlements or judgments if you are sued over covered injuries or property damage, usually even if a claim is groundless, up to policy limits.

Liability insurance is sometimes called third‑party coverage because it pays others, not you, when you are found legally liable.

Common types of liability coverage

• Auto liability: Covers injuries and property damage you cause to others in an at‑fault crash, and your legal defense if you’re sued.

• General/commercial liability: Covers businesses for customer slip‑and‑fall injuries, damage caused by products or services, and certain “personal and advertising injury” claims such as libel or slander.

• Professional liability (errors & omissions, malpractice): Covers professionals (like doctors, lawyers, consultants, social workers) when clients claim mistakes, negligence, or failure to meet professional standards caused them financial or physical harm.

• Personal liability (often in homeowners or umbrella policies): Covers everyday risks such as a guest being injured at your home or your child accidentally damaging a neighbor’s property.

What liability insurance usually does not cover

• Your own injuries or property: Your medical bills or damage to your own car or building are typically handled by other coverages (e.g., health, collision, comprehensive, property) rather than liability.

• Intentional or criminal acts: Deliberate harm, fraud, or criminal behavior is almost always excluded, even if you are sued over it.

• Contractual obligations: Many policies exclude purely contractual liabilities that go beyond ordinary legal responsibility, unless specifically added by endorsement.

Mini “Quick Scoop” recap

• Liability insurance protects your assets when you’re held responsible for harming others or their property, by paying damages and legal costs within policy limits.

• Coverage varies by policy type (auto, business, professional, personal/umbrella), but the core idea is the same: it follows your legal liability , not your own stuff.

• Exclusions matter a lot, so reading the fine print and asking an agent or broker to walk through real‑world scenarios for your job, business, and lifestyle is essential.