What is the primary purpose of liability insurance?

The primary purpose of liability insurance is to protect against legal claims or lawsuits. This type of insurance is essential for individuals and businesses as it provides financial coverage in scenarios where the insured party is found legally responsible for causing harm to another person or their property. Liability insurance helps cover the costs associated with legal defense, settlements, or judgments that may arise from such claims.

For instance, if a person accidentally damages someone else's property or injures another person, liability insurance would help pay for the resulting legal fees and any compensation the insured may be required to pay due to the lawsuit. This helps safeguard the insured's financial stability by ensuring they are not burdened with potentially crippling legal costs.

While the other options mention different aspects of insurance coverage, they do not encompass the primary function that liability insurance serves, which is focused specifically on providing coverage for legal responsibilities arising from injuries or damages to others.