What is one of the primary purposes of liability insurance?

Liability insurance serves as a financial safeguard for individuals and businesses against legal claims that may arise from damages they cause to others. This coverage is essential because it helps manage the costs associated with lawsuits, including legal fees and any settlement or judgment amounts that may result from claims of negligence or wrongful acts.

When someone is found legally responsible for injuring another person or damaging their property, liability insurance ensures that the insured can fulfill their financial obligations resulting from that judgment, thus preventing significant financial strain. By having liability insurance, the insured can operate with greater peace of mind, knowing that they have the necessary support in case they face legal claims for damages.

In contrast, the other options focus on coverage areas that are typically not the primary function of liability insurance; they address issues such as personal property damage repair, medical expenses, or protection of personal assets, which fall under different types of insurance policies.