Which coverage protects the insured against liabilities for damages caused to others?

Personal Liability Coverage is designed to protect the insured from claims arising out of their legal liability for injuries or damages to others. This coverage is typically included in homeowners and renters insurance policies. If someone is injured on the insured’s property or if the insured accidentally causes damage to someone else's property, personal liability coverage provides financial protection for legal expenses, medical bills, and any settlements or judgments that may result from such incidents.

This type of coverage is crucial because it addresses risks associated with everyday activities, ensuring that individuals are not left financially vulnerable in the event of an accidental injury or property damage to a third party. In contrast, theft coverage specifically relates to losses from theft, property coverage protects against damage to the insured's own possessions, and optional endorsements refer to additional coverages that can be added to a policy but do not inherently cover liability.