Liability insurance for individuals is not considered a strict necessity, although many homeowners purchase it to protect their homes. Nearly all states mandate a minimum level of liability insurance for automobiles.
Liability insurance protects you from financial losses if somebody successfully sues you for a personal injury or other type of loss that the court decides was your fault or responsibility. For most individuals, the liability insurance their carry on their homes and automobiles is sufficient. Liability insurance is highly desirable for businesses and professional practices, however, and is sometimes legally required.
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