What does liability in insurance cover?

Liability in insurance specifically covers losses that arise from unintentional negligent actions that result in damage to someone else's property or bodily harm to another person. This form of coverage is essential because it protects the insured from legal claims that may occur due to accidents or incidents where they are deemed responsible for causing harm without malicious intent.

For instance, if a person accidentally causes an accident that damages another person's vehicle or injures someone, liability insurance would cover the costs associated with those damages or injuries. This is crucial because it ensures that individuals can financially manage the repercussions of their actions, which may result in significant legal and medical expenses.

The other options pertain to circumstances that are not typically covered under standard liability insurance. Intentional acts of damage or harm fall under criminal behavior and would not be covered by liability policies. Additionally, coverage for all types of property damage from natural disasters like floods or fires usually falls under property insurance, not liability insurance.