What is the main protection offered by liability coverage?

Liability coverage primarily offers protection against claims arising from injuries and damages inflicted on third parties. This means that if an insured individual is deemed legally responsible for causing harm or damage to someone else's property or person, liability coverage steps in to cover the costs associated with these claims. This includes legal fees, medical expenses for the injured party, and any settlement or judgment amounts awarded to the claimant.

This type of coverage is essential because it provides financial security, ensuring that the insured does not have to personally bear the often substantial costs resulting from lawsuits or claims made against them. It emphasizes the principle of accountability in insurance by protecting individuals from the financial fallout of their actions that may inadvertently harm others.

In contrast, the other options do not align with the core definition of liability coverage. Claims resulting from injuries to the insured focus on personal injury protection rather than third-party liabilities. Losses incurred by the insurance company and losses associated with natural disasters refer to different kinds of risk management and coverage, which do not pertain directly to liability coverage and its purpose.