What does liability coverage protect against?

Liability coverage is specifically designed to protect individuals or businesses against claims for bodily injury and property damage that they may inadvertently cause to others. This type of insurance is crucial in scenarios where a policyholder is held legally responsible for accidents resulting in injury to another person or damage to someone else's property.

For example, if a person accidentally causes a car accident where another driver gets injured or their vehicle is damaged, liability coverage would help cover the costs associated with that claim. It provides financial protection against various legal liabilities, ensuring that the insured can handle the costs that arise from such incidents without facing significant financial hardship.

The other options do not align with the primary purpose of liability coverage. Loss of property from theft pertains to property insurance, healthcare costs due to accidents relate to health insurance, and damages from natural disasters usually fall under specific types of property or disaster insurance. Thus, option A is the most suitable choice regarding the protection offered by liability coverage.