What is Liability Insurance?

Liability insurance is designed to protect an individual or organization against legal responsibility arising out of a negligent act or failure to act as a prudent person would have acted which results in bodily injury or property damage to another party. Any individual involved in your activity or a spectator can claim against you for damages as a result of any injury for damage to their property. Liability insurance is designed to protect against the expense of defending a third-party legal action, as well as the court award or settlement if you are found negligent.