What is "liability insurance" designed to protect against?

Liability insurance is specifically designed to provide financial protection against claims that may arise from injuries or damages that one party causes to another. This type of insurance covers the legal costs and any settlements or judgments that may occur if the insured is found liable for the injury or damage to others.

In many scenarios, liability insurance might involve situations where an individual or business is sued for negligence or harmful actions, protecting them from the financial burden associated with legal claims. This insurance is essential for individuals and organizations as it safeguards their assets and helps to ensure that they can cover the costs of claims made against them.

The other options do not accurately capture the scope or purpose of liability insurance. While theft of personal property pertains to property insurance, natural disasters relate more to specific coverages like homeowners or flood insurance, and losses associated with business operations primarily concern business insurance or commercial coverage rather than liability specifically. Thus, option B correctly identifies the core function of liability insurance: to shield against claims resulting from injuries or damage inflicted on others.