What type of coverage provides protection from liability for bodily injury and property damage?

Liability coverage is designed specifically to protect individuals from financial loss in the event that they are found legally responsible for causing bodily injury or property damage to another party. This type of coverage typically applies to situations arising from car accidents or other incidents where the insured is at fault.

For instance, if an insured driver causes an accident that injures another person or damages someone else's property, liability coverage will help cover the costs of medical expenses and repairs. This protection is crucial because it helps ensure that the insured does not have to pay out of pocket for potentially significant financial liabilities.

In contrast, collision coverage pertains to damage to one's own vehicle in the event of a crash, regardless of fault. Comprehensive coverage offers protection against non-collision incidents, such as theft or natural disasters, rather than liability issues. Uninsured motorist coverage specifically protects against incidents involving other drivers who lack insurance, rather than covering any liabilities stemming from the insured's actions.

Thus, liability coverage plays a vital role in safeguarding assets and providing peace of mind in situations involving accidents and claims for damages caused by the insured.