What is personal liability coverage?

Personal liability coverage is specifically designed to protect individuals from legal claims that arise from injuries or damages they may cause to other people or their property. This coverage is essential for protecting a policyholder’s financial assets in the event they are found responsible for an accident that injures someone or damages their possessions. It provides coverage for legal defense costs, settlements, and judgments in such claims, thereby safeguarding the insured from potentially high financial losses due to lawsuits.

The other options pertain to different types of insurance coverage that do not relate to personal liability. Protection of the insured's property is covered by property insurance, coverage for theft pertains to specific provisions in home or renters insurance, and medical expenses incurred by the insured would typically be covered under health insurance or personal injury protection, not liability coverage. Hence, the focus of personal liability coverage is uniquely on legal claims related to the insured's actions affecting others.