What is often included in a liability insurance policy?

A liability insurance policy is designed primarily to protect the insured against claims that arise from their actions or negligence that cause harm to others. One of the core elements of this type of insurance is that it typically includes legal defense costs for claims made against the insured. This feature is crucial because even if a claim is found to be without merit, defending against it can be costly. Therefore, liability policies often cover not only the settlements or judgments resulting from claims but also the legal expenses incurred during the litigation process.

In this context, coverage for the insured's property damage is not a standard component of liability insurance, as this type of coverage is more aligned with property insurance policies. Similarly, while coverage for business-related injuries can fall under liability insurance in the form of general liability or specific business policies, it does not comprehensively define what is included in a typical liability insurance policy. Lastly, benefits for personal health care are usually associated with health insurance, rather than liability insurance, which focuses on third-party claims related to bodily injury and property damage rather than providing health benefits to the insured. This makes legal defense costs an essential and defining feature of liability policies.