There are different types of insurances, which are offered for the people for different purposes by different insurance companies. They are used for protecting the persons or the businesses against liabilities or covering the amounts in the adverse situations.
For the person who got injured because of your unknown fault in the cases of accident will get covered under this insurance. Generally, this liability insurance is used for paying the claims of the other person who got injured because of accident. The coverage can be done for the medical bills, income loss because of getting disabled during the accident.
Suppose if we take the case of car accidents, if you are involved in the accident with the other car, then in those cases for protecting the assets of the yours against the claims this insurance will help a lot. In such situations, the injured persons who are in another car will get the insurance coverage. This insurance will be helpful for the drivers or the people who always drive the car, for avoiding the claims against the third parties and covering the medical costs for the injuries of the third party.
If you are unable to pay the costs which are needed for medicine, then you may be left severe penalties. Depending on the assets of the person, the coverage may be vary. If you have enough money and you are richer, then in those cases go for Umbrella liability insurance which will cover all the claims or the higher bodily injury liability insurance can be taken which is used for covering severe bodily injuries.