Liability insurance is coverage that pays for damages when the insured person is legally responsible for causing injury or harm to someone else. This type of insurance protects the policyholder by covering the costs they would otherwise have to pay out of their own pocket when they're found at fault for accidents, including the other person's medical bills, lost wages, pain and suffering, and property damage. For example, if you cause a car accident, your auto liability insurance would pay for the other driver's injuries and vehicle repairs, or if someone gets hurt on your property, your homeowner's liability insurance would cover their medical expenses.
In personal injury cases, liability insurance is typically the primary source of compensation for accident victims since most people don't have enough personal assets to pay for serious injury claims. When you're injured by someone else's negligence, you're essentially making a claim against their liability insurance policy rather than trying to collect money directly from them. However, if the at-fault person's liability coverage limits are too low to fully compensate for your injuries, or if they don't have insurance at all, you may need to look to your own insurance policies for additional coverage or pursue other legal options to recover the full amount of your damages.
