Liability Coverage

Published: | Updated: March 23, 2018

Definition - What does Liability Coverage mean?

Liability coverage is a form of insurance that protects the insured against the risk of being sued or being held legally liable for damage, injury, or other negligence. It pays for both legal fees and payouts in case the insured is found legally responsible.

Insuranceopedia explains Liability Coverage

Liability coverage is especially important for individuals or businesses that have a higher risk of being held liable for injury to others. For example, doctors buy malpractice insurance, businesses with hazardous work environments often opt for it, and many product manufacturers buy product liability insurance in case of defects in the products. Outside of the professional realm, it may be part of auto or homeowners insurance to protect against lawsuits resulting from damage due to or on the insured property, respectively.

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The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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