West Virginia Adjusters Practice Exam 2025 - Free Adjuster License Practice Questions and Study Guide

Liability insurance is specifically designed to cover claims that arise from injuries or damages inflicted on other parties for which the insured may be held responsible. A common example of this is when an individual is involved in an accident that causes injury to a third party. In such cases, the liability insurance would cover the medical expenses, legal fees, and damages awarded to the injured party, protecting the insured from financial loss due to the claim against them.

The other scenarios do not typically fall within the scope of liability insurance. Damages caused to one’s own property relate to property insurance, while loss of income due to business closures may be covered under business interruption insurance. Theft of personal belongings generally falls under homeowners or renters insurance, rather than liability coverage. Thus, the focus of liability insurance on third-party claims clarifies why this option is regarded as a common example of a claim covered by this type of insurance.