What types of damages are covered in liability insurance?

In New Hampshire, liability insurance is designed to protect people or businesses from the potential costs of legal action. It provides financial protection in case someone is injured on your property or because of something you did. Generally, liability insurance covers damages that are associated with medical bills, legal costs, and expenses related to property damage. Medical bills typically include out-of-pocket expenses, such as hospital stays, doctor visits, medical equipment, and prescription drugs. These costs are usually covered by the insurance policy up to the pre-determined amount specified in the policy. Property damage includes losses from destruction of property, vandalism, or theft. The policy will generally cover the cost of repairing or replacing damaged property. In some cases, the policy will also provide coverage for the cost of temporary structures, such as a tent in the event of a natural disaster. Legal costs can include the expense of defending a lawsuit or pursuing damages from someone else. The insurance company will most likely pay the legal fees if you win the case, and may also help handle the paperwork and representation in court. Finally, liability insurance may also cover punitive damages, which are intended to punish an individual or business for wrongful conduct. Punitive damages are usually much higher than other types of damages and are intended to deter people from acting in a negligent manner. However, these types of damages are only sometimes covered, depending on the specifics of the policy.

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