Liability insurance coverage is a type of insurance that protects you financially if you are held legally responsible for someone elses injuries or property damage. Liability coverage is a standard component of most auto insurance policies and is required in most states. Liability insurance can help cover medical and legal fees if youre found at fault in an accident that injures another person or damages their property. Liability insurance comes in two forms: bodily injury liability coverage and property damage liability coverage.

• Bodily injury liability coverage: This coverage helps pay for an injured persons medical expenses if youre found at fault in an accident. It can also help cover legal fees if youre sued.
• Property damage liability coverage: This coverage helps pay for repairs to another persons property if you damage it with your car or in any other way.

Liability coverage typically does not pay to repair damage to your own car after an accident, and it also does not pay to repair damage caused by other factors, such as hail. Liability coverage cannot be used to pay for your vehicular damage or personal injury costs. For that, you will need comprehensive and/or collision coverage. Liability insurance is a general term that describes different types of insurance coverage that help protect you or your business if someone files a lawsuit or reports a claim against your company.