Which of the following is considered a primary purpose of liability insurance?

Liability insurance is specifically designed to cover legal responsibilities that individuals or businesses may face when they are found liable for harming others. The primary purpose of liability insurance is to protect against claims involving property damage and bodily injury that the insured may be responsible for due to their actions or negligence.

When someone holds liability insurance, it can help pay for legal defense costs, settlements, or judgments related to these claims. This means that if an insured individual accidentally causes damage to someone else's property, the liability insurance would provide financial coverage for those claims, thereby safeguarding the insured's assets.

The other choices do not align with the primary functions of liability insurance. Covering health expenses is typically the domain of health insurance, life insurance premiums relate to life insurance policies rather than liability coverage, and providing income in case of unemployment is related to unemployment insurance, not liability insurance. Therefore, the recognition of liability insurance as a means to mitigate risks associated with property damage claims encapsulates its essential purpose within the broader context of risk management in insurance.