Quick Definition

Liability insurance is a type of insurance coverage that protects an individual or business from the risk of being sued and held legally liable for something such as malpractice, injury or negligence.

Examples

• 1A doctor purchasing malpractice insurance to cover legal costs and settlements if a patient sues for medical negligence.
• 2A restaurant owner obtaining general liability insurance to cover expenses related to customer injuries on the premises.
• 3A homeowner using liability insurance to cover legal fees and damages if someone is injured in their home and sues for damages.

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