Which coverage helps provide funds if an insured is legally liable for damages?

Liability coverage is designed to protect individuals or businesses if they are found legally responsible for causing harm to another person or their property. This type of coverage typically helps pay for damages, legal fees, and any court costs associated with claims due to the insured's negligence. It ensures that the policyholder has financial support in case they face lawsuits or compensation claims resulting from accidents or injuries for which they are liable.

In the context of insurance, property damage coverage specifically addresses damage to another person's property, but it does not encompass the broader responsibility and compensatory needs that liability coverage provides. Special coverage generally refers to specific or additional protections that can be tailored to unique risks but does not inherently imply liability protection. Accidental injury coverage might suggest coverage of injuries that happen unexpectedly, but it may not fully cover the responsibilities and legal liabilities associated with those injuries. Therefore, liability coverage is the most direct and comprehensive option for handling situations in which an insured is legally liable for damages.