Question

Which insurance covers losses to a third party caused by the insured, by an object owned by the insured, or on premises owned by the insured?

1) Comprehensive
2) Liability
3) Indemnity
4) Disability

Answer 1

Liability insurance is what covers losses to a third party caused by an object owned by the insured, or on their premises. It is a crucial component to prevent major financial losses in case of legal responsibility for damages.

Step-by-step explanation:

The insurance that covers losses to a third party caused by the insured, by an object owned by the insured, or on premises owned by the insured, is known as liability insurance. Liability insurance is essential for protecting against financial loss if you are found legally responsible for causing harm to another person or their property. It is one of several types of insurance that people may have, which also include health insurance, car insurance, house or renter's insurance, and life insurance. People pay regular payments, called premiums, to an insurance company, which then uses these funds to pay out claims when insured individuals or their property cause harm to third parties.