What is the main function of personal liability insurance?

Personal liability insurance primarily serves to protect individuals from claims made against them for bodily injury and property damage that they may unintentionally cause to others. This coverage is essential as it provides financial protection in situations where the insured is legally held responsible for damages or injuries inflicted upon another person or their property.

For instance, if a guest is injured in your home due to a slip and fall, personal liability insurance would cover any legal claims or expenses resulting from that incident. It can help pay for medical bills, legal fees, and any settlements or judgments that might arise if the situation escalates to a lawsuit.

While legal cost coverage may seem relevant, personal liability insurance encompasses claims made due to injury and property damage as its core function. Additionally, protection against lost wages or rental properties falls outside the primary scope of personal liability insurance, focusing instead on personal incidents that can lead to legal claims. Thus, the correct and most comprehensive answer emphasizes the protection against the risk of claims related to injury and property damage.