What is the main purpose of liability insurance?

Liability insurance is primarily designed to offer financial protection from lawsuits that may arise due to claims of negligence or harm caused to others. It provides coverage for legal defenses and any settlements or judgments that the insured might be required to pay. This means that if an individual or business is sued for causing injury or damage to another party, liability insurance can help cover the significant costs associated with legal proceedings and the financial repercussions of the judgment.

While other types of insurance, such as health or auto insurance, address medical expenses or repair costs for vehicles, these fall outside the scope of liability insurance. Liability insurance focuses specifically on the insured's potential legal obligations to third parties rather than providing personal coverage for one's own expenses or property.