What is NOT typically covered by liability insurance?

Liability insurance is designed to cover claims for injuries or damages that an insured individual or entity causes to others, which typically includes personal injury claims, property damage claims, and legal defense fees associated with lawsuits arising from these claims. However, intentional damage caused by the insured is generally not covered under liability insurance policies. This is because liability insurance aims to protect against accidents and negligence, not intentional harm or malicious acts.

Therefore, the coverage gap exists for intentional acts, as allowing such claims to be covered would contradict the fundamental purpose of liability insurance. Insurers consider intentional damage to be a higher risk and a moral hazard, leading them to exclude it from their coverage terms. Understanding this distinction is crucial for anyone studying liability insurance, particularly for obtaining an adjuster’s license.