Liability coverage is a type of insurance that protects you financially if you are found responsible for causing harm to someone else or their property. This coverage can help pay for legal fees, medical expenses, and damages that you may be required to pay as a result of an accident or incident. There are different types of liability coverage, including auto liability insurance for car accidents and general liability insurance for businesses. Having adequate liability coverage is important because it can help safeguard your assets and provide peace of mind in case of unexpected events.