Liability coverage is a type of insurance that helps protect you financially if you are found responsible for causing harm to someone else or their property. For example, if you accidentally damage a neighbor's fence or injure someone in a car accident, liability coverage can help pay for the costs associated with those damages. This coverage is often included in policies like auto insurance and homeowners insurance. Having liability coverage is important because it can save you from significant out-of-pocket expenses. Without it, you might have to pay for legal fees, medical bills, or repair costs yourself. By having this protection, you can have peace of mind knowing that you are covered in case of unexpected accidents.