Third Party Liability Insurance is a type of insurance that protects individuals and businesses from financial loss if they are found legally responsible for causing harm to someone else or their property. This coverage typically includes legal fees, medical expenses, and damages awarded in a lawsuit, ensuring that the insured party does not have to pay these costs out of pocket. This insurance is commonly required for drivers, as it covers damages resulting from car accidents involving other people. It can also apply to businesses, protecting them against claims related to accidents that occur on their premises or due to their products or services.