Liability insurance is a part of the general insurance industry that is designed to protect people from the financial risks associated with lawsuits and other legal claims. Because lawsuits and claims can be made for many reasons, liability insurance (aspect online) needs to be part of a wide range of insurance products.
For example, liability insurance provisions are often included in car insurance policies, household and property insurance policies, health insurance policies, and dedicated public liability insurance policies. The three major types of liability insurance are public liability insurance, product liability insurance, and employer liability insurance, the first two of which are sometimes summarised as general liability insurance.

Liability insurance plays an important role in modern society, as a way to protect individual people, families, businesses, and organisations from the risk of financial loss. People interact with members of the public all the time, and are therefore potentially responsible for any damages or loss that may occur to people and their property. For example, drivers on public roads may be responsible for damage to other people’s cars, which is the reason why liability protection is built into most third party car insurance contracts. Home owners could also potentially be responsible for accidents that happen within their home, which is why liability cover is built into some property insurance contracts.

However, the biggest groups of people who are at danger from financial loss due to legal claims are businesses and organisations who work with the public all the time. Industry and commerce is based on connection with third parties, all of which could possibly be affected by physical injury or property damage. Public liability and general liability policies are designed as a way to protect businesses in these situations. Businesses who produce and distribute products have other dangers associated with liability, which is why product liability policies exist to protect them in the case of lawsuits and other legal claims.