Which of the following is a key function of liability coverage?

Liability coverage is fundamentally designed to protect the insured against claims that arise from bodily injury and property damage for which they may be legally responsible. This means that if someone suffers an injury or if property is damaged as a result of the insured's actions or negligence, liability coverage ensures that the insured is financially protected against the costs associated with these claims, such as legal fees, settlements, or judgments.

The focus of liability insurance is to provide financial protection and peace of mind by covering the costs that can arise from unforeseen accidents or incidents where the insured may be found at fault. This coverage is critical in personal lines, including auto, homeowners, and renters insurance, as it safeguards the insured from potentially devastating financial repercussions of legal claims.