What does liability insurance primarily protect against?

Liability insurance is specifically designed to offer protection against claims resulting from injuries and damage that the insured may cause to other people or their property. This type of insurance is essential because it helps cover the legal costs and payouts associated with lawsuits that arise when the insured is deemed responsible for harm or loss experienced by others.

In the context of this question, the protection extends to bodily injury claims, where an individual might get injured due to the insured's actions, as well as property damage claims, which involve physical damage to someone else's property. This coverage provides financial security and peace of mind, ensuring that the insured can meet their legal obligations without suffering detrimental financial consequences.

Other options do not align with the primary focus of liability insurance. For instance, injury to oneself pertains more to personal health insurance or medical coverage rather than liability. Similarly, loss of income typically falls under different types of insurance, such as disability insurance, while natural disasters are generally covered by property insurance or specific hazard plans, rather than liability insurance. Hence, the focus on injury to others and property damage clearly defines the essential role that liability insurance plays in protecting against external claims.