What does liability insurance primarily protect against?

Liability insurance primarily protects against legal claims made against the insured. This type of insurance is designed to cover costs associated with lawsuits and claims resulting from the insured's actions or negligence that cause injury or damage to others. In the event that an insured individual or business is sued for damages, liability insurance can cover legal defense costs, settlements, and any awards that might be granted to the claimant.

For instance, if a person accidentally injures someone else or damages their property, liability insurance would provide the necessary financial resources to address the enforceable claims that arise from these incidents. This protection is crucial because the financial implications of a lawsuit can be significant, including high legal fees and potentially substantial compensation awards.

The other options do not accurately reflect the primary purpose of liability insurance. Loss of income pertains more to business interruption coverage or disability insurance. Property damage to the insured refers to coverage that would fall under property insurance rather than liability. Lastly, natural disasters would be covered under separate policies, such as homeowner's insurance or flood insurance, rather than liability insurance specifically designed to handle legal claims.