General Concepts
Liability Coverage
Coverage that pays for bodily injury and property damage you cause to others — protects your assets.
Last reviewed: May 2026 · Editorial methodology
Definition
Insurance that pays for bodily injury and property damage you cause to others. Auto liability and homeowners liability are required by law or lenders in most states. Liability coverage protects your assets if you are sued. State auto minimums are typically too low — most experts recommend at least 100/300/100 (or higher) plus an umbrella policy for households with significant assets.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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