Liability cover
Liability cover pays if you are found legally responsible for injury to another person or damage to their property. It covers legal costs and any damages awarded against you, up to the policy limit. Also called third-party cover in motor insurance, or public liability in business insurance.
Types of liability cover
Liability cover appears in many forms depending on the context: third-party motor (mandatory minimum for driving), public liability (for businesses and self-employed people who interact with the public), employers' liability (required in the UK if you have employees), and personal liability (often included in home contents policies for accidental injury or damage you cause to others). The limit on a liability policy is typically very high — often £1–5 million for personal liability, higher for commercial.
For business liability, see our guide to business insurance. For motor, see what to do after a motor accident.