What does a liability policy primarily protect against?

A liability policy primarily protects against legal costs from claims made against the insured. This type of insurance is designed to cover the expenses associated with defending against lawsuits, including attorneys' fees, court costs, and settlements or judgments if the insured is found liable for damages. The focus of liability insurance is to provide financial protection against claims of negligence, personal injury, or property damage that arise from the insured's actions or behaviors.

While property damage claims, injuries sustained on the insured's property, and loss of income during litigation are important considerations in the broader context of risk management and coverage, the primary purpose of liability insurance is to cover the legal ramifications arising out of such situations. Therefore, it acts as a critical tool for individuals and businesses to safeguard themselves from potentially high costs associated with legal defense and liability claims.