Liability coverage
Coverage that may respond when you are legally responsible for another person's injury or property damage.
Also called
liability insurance
What it means
Protection for covered legal liability to other people, including eligible defence or settlement costs as stated in the policy.
Example
If a visitor is injured because of a covered hazard at your home, liability coverage may respond to a resulting claim.
Canada context
Insurance wording and mandatory coverage can differ by province, insurer and policy form. Read the declarations, endorsements and full policy wording that apply to you.
Common confusion
Liability coverage generally addresses harm to others, not damage to your own property.
Important
This plain-language explanation is general information, not legal advice or a substitute for your policy wording. Ask a licensed insurance professional about your situation.
Last reviewed August 17, 2026
Sources
General information only. Coverage and terminology can differ by province, insurer, and policy wording. Consult your policy and a licensed insurance professional.