Written by  //  June 22, 2011  //  Insurance Glossary: E-M, Insurance Terms  //  Comments Off on Liability

This insurance pays sums that the policyholder is legally obligated to pay, or that the insurance company has agreed to pay, as damages to others as a result of the insured’s negligence. In auto insurance, for instance, it covers bodily injury to another or property damage liability of another’s property.

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