What kind of coverage typically provides for damages caused by the insured's negligence?

Liability insurance is designed to protect individuals and businesses from the financial repercussions that arise when they are legally responsible for causing harm to another person or their property due to negligence. This coverage typically pays for claims resulting from injuries or damages that the insured is found liable for, including legal defense costs. It serves as a critical safety net for both personal and commercial entities by ensuring they can cover costs related to lawsuits, medical expenses, and damages that may arise from negligent actions.

In contrast, property insurance focuses specifically on the protection of the insured's own assets against risks such as theft, fire, or natural disasters, rather than covering third-party claims resulting from negligence. Workers' compensation insurance provides benefits to employees who suffer work-related injuries or illnesses, and does not involve liability issues concerning negligence. Flood insurance specifically covers losses due to flooding, and is not related to negligence. Therefore, liability insurance is the appropriate choice for addressing damages caused by an insured's negligent actions.