What coverage typically offers protection against claims arising from lawsuits?

Liability insurance is designed specifically to protect individuals or businesses from claims arising from lawsuits or legal actions. When someone is held responsible for damages or injuries caused to another person or their property, liability insurance provides coverage for legal fees, court costs, and any settlements or judgments that may result. This type of insurance is crucial for mitigating the financial risks associated with legal claims, which can often be substantial.

Property insurance, on the other hand, primarily focuses on physical assets such as buildings, equipment, or personal property, offering coverage for damage or loss due to events like theft, fire, or natural disasters. Health insurance covers medical expenses and health-related services, whereas workers' compensation insurance specifically addresses workplace injuries and provides benefits to employees who are injured on the job. This differentiation among these types of coverage highlights the unique role that liability insurance plays in protecting against legal claims.