What is liability insurance?

Liability insurance is a type of insurance that provides financial protection to individuals and organizations against financial loss due to an accident or event resulting in injury or property damage. In Texas, liability insurance is required by law if an individual or organization owns or operates a motor vehicle, truck, or other vehicle, or if they own or operate a business or other entity. Liability insurance covers the losses caused by an accident that is the fault of the insured party. It also covers the costs associated with defending the insured against any resulting legal action. Liability insurance is generally divided into two parts: property damage and personal injury coverage. Property damage coverage pays for damages caused by the insured party to another person’s property, such as a vehicle or building. Personal injury coverage pays for medical costs and other expenses resulting from injuries caused to another person by the insured party. In Texas, liability insurance is a requirement for drivers and business owners. It is important to obtain adequate coverage and to keep it up-to-date so that an accident does not result in financial hardship. Additionally, Texas law requires that individuals and organizations disclose their insurance coverage when requested by law enforcement or other legal authorities.

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What is liability insurance?

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