What does liability insurance policy cover?

Supporting Details:

• Bodily Injury: This covers medical expenses, lost wages, and pain and suffering for individuals injured due to your negligence.
• Property Damage: This covers the cost to repair or replace property belonging to others that you accidentally damage.
• Legal Defense Costs: Even if you are not found liable, the policy typically covers the legal fees associated with defending yourself against a claim or lawsuit.
• Settlements and Judgments: If you are found legally responsible, the policy pays for the settlement amount or court-ordered judgment, up to the policy limits.

Common types of liability insurance include auto liability, homeowner's liability, general business liability, and professional liability (errors and omissions).