Liability insurance is a form of protection designed to shield businesses from the financial costs associated with being held liable for injury or damage caused by their products, services or actions. By providing coverage for a variety of potential liability risks, this type of insurance can serve as a safeguard against the legal expenses, compensation claims and other costs that can occur when a business is found to have been negligent or irresponsible. With this kind of protection in place, companies can rest assured that they will be able to meet any obligation stemming from an unforeseen incident without running into serious financial strain.