What is typically included in the concept of insurance liability?

The concept of insurance liability primarily encompasses obligations that an insurance company has to pay for claims arising from personal injury or property damage. This includes instances where an insured party is found legally responsible for causing harm to others, which typically results in the payment of damages.

Claims for personal injury cover a wide range of bodily harm situations, while property damage addresses occurrences where someone's property is damaged due to the actions of the insured. Therefore, related claims fall directly under the umbrella of insurance liability and are fundamental to the purpose of liability insurance.

Administrative processing fees and public relations costs do not fall under the typical claims covered by insurance liability; they represent operational or marketing expenditures that are not directly linked to legal obligations arising from accidents or incidents. Similarly, only considering physical injuries is too narrow, as liability also includes property damage claims. This broader understanding of liability is crucial for comprehending the full spectrum of risks that insurance policies aim to manage.