YOU ASK:

What is the definition of Liability Insurance?

WE ANSWER:

Liability Insurance is the type of insurance, which provides protection for any legal liabilities and obligations in the event that the insured person causes bodily injury or damage to property to another person.

Liability insurance, for property coverage, only answers for the losses incurred by the other party and not the losses incurred by the insured person. That means that if this is the only coverage a person has, his person and property is not protected in the event of loss or damage. That is why liability insurance is cheaper than comprehensive coverage.

Liability insurance may also refer to protection from third party claims, or liabilities borne by employers or professionals.

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