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Claims Covered by Liability Insurance

Learn about the coverage structure of a typical CGL policy and the two primary triggers for liability coverage.


Liability insurance, also known as third-party insurance, protects a policyholder from claims by third parties. For instance, if someone falls in a store and sues the store, the store’s liability insurance provides financial protection from that claim.

Liability insurance protects in two ways, by defending the policyholder from third-party claims and indemnifying the policyholder by paying claim damages. We’ll get into more detail about how that works in other lessons. Here, we’ll start with...