Liability insurance is a type of insurance that covers an individual or business for any legal liabilities they may face as a result of injuries, accidents, or negligence. It protects against claims made by third parties who have suffered harm due to the actions or inactions of the policyholder. Liability insurance can cover various types of risks such as bodily injury, property damage, medical expenses, and legal defense costs. The purpose of this type of insurance is to provide financial protection for individuals or businesses against potential lawsuits and to minimize any financial losses that may result from a claim.