Which type of insurance primarily provides coverage for liability arising from property damage or bodily injury?

Liability insurance is specifically designed to protect individuals and businesses from the financial consequences of being held legally responsible for causing bodily injury or property damage to another party. This type of insurance covers legal fees, court costs, and any settlements or judgments against the insured, up to the policy limits.

This coverage is essential for various scenarios, such as when someone is injured on your property or if you accidentally cause damage to someone else's property. By having liability insurance, policyholders can safeguard their personal or business assets from unexpected lawsuits related to these incidents, ensuring they are financially protected in case of claims made against them.

The other types of insurance listed do not focus on liability in the same way. For example, property insurance primarily protects physical assets against risks like theft or damage from natural disasters, but it does not cover liability. Auto insurance does provide some liability coverage in the context of automobile accidents, but it also has components that cover property damage to the vehicle itself. Health insurance focuses on covering medical expenses related to illnesses and injuries rather than liability for damages caused to others.