Liability Insurance Liability insurance is any insurance policy that pays expenses you may incur through accidental injury to the person or property of others. Real or alleged incidents of negligence or other irresponsible action on your part are the claims that are covered under liability insurance policies. Most people carry liability insurance as part of their automobile insurance or homeowners insurance. If a policyholder is involved in a car accident that kills or maims another person, or in any way damages another person's property, liability insurance pays the claim. In fact, liability insurance is such an important part of car insurance that in many states drivers are forbidden to drive unless they have a current liability insurance policy. Liability insurance is an equally important part of a homeowners insurance policy. If someone is injured slipping on your front sidewalk, or if your dog bites a passerby – even if the dog was provoked by the injured party – you as the homeowner are liable for damages. In any case, liability insurance will pay the claims that are filed against you by others who have been damaged on your property or by your actions. Quelle "Liability Insurance" : General Main page for "Liability Insurance"