Liability protection that covers you if you're found legally responsible for injuring someone or damaging their property. This coverage pays for legal defense costs, court judgments, and settlements up to your policy limit. It covers incidents that occur on your property (like a guest slipping and falling) and many incidents that occur away from home (like your dog biting someone at the park). Standard policies typically offer $100,000 to $500,000 in liability coverage, though higher limits are available and recommended.