What does liability coverage protect the insured against?

Liability coverage is designed to protect the insured from claims made by third parties for injuries or damages that the insured is responsible for. This type of coverage is vital in both personal and commercial insurance policies, as it helps cover legal costs and settlements if the insured is found liable for harming someone else or causing damage to their property.

In personal policies, liability coverage might protect an individual if they accidentally injure someone at home or if their pet bites someone. In commercial settings, it can cover a business if a customer is injured on its premises or if the business's operations inadvertently cause harm to someone else's property.

The other options don't align with the core function of liability coverage. Loss of personal property pertains to property insurance, risks associated with business operations may involve different types of coverage such as general liability or commercial property insurance, and natural disasters typically fall under specific perils covered by property insurance rather than liability coverage.