Insurance that protects a party from various types of claims. Typically liability insurance protects the insured from losses resulting from property damage claims or from bodily injury claims. Construction lenders usually require contractors to obtain and carry liability insurance to protect against claims resulting from the contractor's operations. American Banker Glossary
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Insurance guarding against damage or loss that the policyholder, may cause another person in the form of bodily injury or property damage. Bloomberg Financial Dictionary
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liability insurance UK US noun [U] (also liability cover) INSURANCE
► insurance that you buy to protect yourself in case something or someone you are responsible for is damaged or injured in some way: »
The hospitals must buy liability insurance not only for doctors they employ, but also for the hospitals themselves.
Financial and business terms. 2012.