What is the main purpose of liability insurance?

The main purpose of liability insurance is to protect against claims resulting from injuries and damage to people or property. This type of insurance is designed to cover the legal costs and any potential settlements or judgments that may arise from lawsuits filed against the insured due to their actions or negligence that have caused harm to others.

This protection is vital for individuals and businesses alike, as it helps safeguard their financial assets from the significant costs associated with legal claims. For instance, if a person were to accidentally injure someone or damage someone's property, liability insurance would cover the costs related to that incident, providing peace of mind and financial security.

The other choices do not accurately reflect the primary function of liability insurance. While covering medical expenses is important, it typically falls under health or personal insurance. Life coverage for the insured's family pertains to life insurance, which addresses entirely different risks. Lastly, protecting against losses from property damage can be covered by property insurance rather than liability insurance, which primarily focuses on the insured's responsibility for causing harm, rather than loss of their own property.