Which type of insurance protects against legal liabilities?

Liability insurance is specifically designed to protect individuals or businesses against legal liabilities that may arise from causing harm to others or damaging their property. This type of insurance covers the costs associated with legal defense, settlements, and judgments resulting from such claims.

For instance, if a person is found legally responsible for injuring someone else or damaging their belongings, liability insurance will help cover the financial repercussions of those legal obligations. It is particularly important for businesses and professionals who may face substantial claims that could jeopardize their financial stability.

On the other hand, property insurance primarily covers damage to or loss of property rather than liabilities to third parties. Motor insurance generally includes liability coverage for injuries or damages caused while driving, but it also encompasses property damage and personal injury protection specific to vehicle-related incidents. Travel insurance addresses risks associated with traveling, such as trip cancellations, lost luggage, or medical emergencies abroad, rather than legal liabilities. Thus, among the provided options, liability insurance is the one that explicitly safeguards against legal liabilities.