What is the primary purpose of liability policies?

The primary purpose of liability policies is to cover claims arising from acts of negligence. Liability insurance is designed to protect individuals and businesses from legal liabilities resulting from injuries to others or damage to their property as a result of negligence. This means if someone is held responsible for causing harm or damage, their liability policy will help cover the legal costs, settlements, or judgments stemming from that liability.

This type of insurance is essential for safeguarding against unexpected events where an individual or organization's actions—or failure to act—might lead to injury or property damage. By financially covering these claims, liability policies play a crucial role in protecting the insured from potentially devastating financial losses due to lawsuits or legal claims related to their conduct.