What does Liability Insurance mean? Read on to discover the definition & meaning of the term Liability Insurance - to help you better understand the language used in insurance policies.
Liability insurance is a type of insurance coverage that provides protection to a person or entity against the risk of getting sued and being held legally responsible for malpractice, negligence, injury to other persons, or similar claims. Besides covering the legal costs of a facing a lawsuit, it also pays for any legal payouts in case the insured is found legally liable. However, it generally excludes intentional harm and contractual liabilities.
We hope the you have a better understanding of the meaning of Liability Insurance.