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 damaging their property. This coverage can help pay for legal fees, medical expenses, and any settlements or judgments that may arise from a lawsuit. There are various forms of liability insurance, including general liability insurance for businesses, auto liability insurance for drivers, and professional liability insurance for professionals like doctors and lawyers. Each type is designed to cover specific risks associated with different activities or professions.