What is the primary goal of liability insurance?

The primary goal of liability insurance is to protect the insured from financial loss due to lawsuits. Liability insurance is designed to cover legal costs and any settlement or judgment that may arise from claims made by others for damages resulting from the insured’s actions or negligence. This aspect of coverage is crucial, as legal fees can accumulate rapidly, and having liability insurance ensures that individuals or businesses can defend themselves without facing significant financial hardship.

While the other options mention important aspects of insurance, they do not pertain specifically to the main function of liability insurance. Theft coverage, property damage coverage, and protection against fire incidentally address other types of insurance, such as property or homeowners insurance. Liability insurance distinctly focuses on third-party claims, making it vital for individuals and businesses to manage their risk effectively in areas such as personal injury, property damage to others, and other legal obligations.