Which form of insurance adjusts claims related to injuries and damages caused by a third party?

Liability insurance is specifically designed to cover claims related to injuries and damages that a policyholder may cause to a third party. In scenarios where an individual or entity is held responsible for causing harm or property damage to another person, liability insurance provides financial protection by covering legal costs and any settlements or awards that may arise from such claims.

This coverage is critical for businesses and individuals alike, as it ensures that they can meet their legal obligations to compensate others for injury or damage. For instance, if a person accidentally injures another individual during an event or a business's operations lead to customer harm, liability insurance steps in to handle the claims associated with those incidents.

In contrast, property insurance focuses on covering damage to the policyholder's own possessions, health insurance addresses medical expenses for the policyholder's own health needs, and life insurance provides financial support to beneficiaries in the event of the policyholder's death. Each of these other types of insurance serves a unique purpose but does not specifically relate to claims involving third-party injuries and damages, which is the primary function of liability insurance.