What is the primary purpose of personal liability insurance?

The primary purpose of personal liability insurance is to protect against legal obligations that arise when injuries or damages are caused to others. This type of insurance is designed to cover the policyholder's financial responsibility if they are found liable for someone else's injuries, property damage, or other related lawsuits. It includes expenses related to legal defense and settlements or judgments awarded to the injured party, thereby safeguarding the policyholder's assets and financial well-being.

Personal liability insurance does not typically cover damage to one's own property, loss of business income, or medical payments for injuries sustained by the policyholder or their family members. Instead, its focus is on providing protection for claims made by third parties, ensuring that individuals have a safety net in case of unforeseen incidents that result in legal claims.