What type of insurance typically covers personal liability for injury or damage caused by the insured?

Liability insurance is specifically designed to protect individuals and businesses from the risk of being held legally responsible for injury or damage to other people or their property. This type of insurance typically includes coverage for medical expenses, legal fees, and any damages awarded in a lawsuit where the insured is found to be at fault.

In the context of personal liability, this coverage is essential because it safeguards the insured's assets and provides a defense in case legal action is taken against them. Liability insurance is crucial for preventing significant financial loss that can occur from accidents, such as slipping and falling on someone's property or causing damage to someone's belongings.

Health insurance is primarily focused on covering medical expenses related to health care, and does not provide coverage for liability claims. Auto insurance includes liability coverage for incidents involving vehicles but does not encompass the broader spectrum of personal liability outside of automotive situations. Property insurance is intended to protect one's own property, such as a home or personal belongings, rather than covering liability for damage or injury to others. Therefore, liability insurance stands out as the appropriate choice for addressing personal liability concerns.