What is liability insurance ?

Liability insurance means that insurance which provides protection from claims arising out of injuries or damage to other people or property. It offer specific protection against third party insurance claims, i.e., payment is not made to the insured but made to the someone suffering loss and who is not a party to the insurance contract. For eg. Drivers in Arkansas are required to carry a minimum amount of liability coverage in the amount of 25/50/25. $25,000 for bodily injury liability per person, $50,000 for all injuries , and $25,000 for total property damage .