What does liability insurance primarily cover?

Liability insurance primarily covers injury or damage caused to others, which is crucial for protecting individuals or businesses against claims resulting from their actions or negligence. When a person or entity is found legally responsible for causing harm to someone else or for damaging someone else's property, liability insurance helps cover the associated costs, such as legal fees and any settlements or judgments.

This type of insurance ensures that the insured does not have to bear the full financial burden of these liabilities, which can be significant. It's designed to provide financial protection in situations where one party may seek compensation for injuries, damages, or losses that are the fault of the insured. Examples include auto liability insurance covering damages from a car accident, general liability insurance for businesses in case of accidents on their premises, or professional liability insurance for practitioners against claims of negligence in their professional services.

In contrast, the other options refer to different types of insurance or coverage. Losses related to one's own property pertain to property insurance, future income loss is more associated with disability insurance, and health-related expenses are covered by health insurance. Each of these serves distinct purposes, but they do not fall under the primary coverage of liability insurance.