What characteristic is unique to liability insurance?

Liability insurance is distinct in that it specifically offers protection against claims of negligence. This means that if someone is held responsible for causing harm or injury to another party—whether it be property damage or bodily injury—liability insurance provides coverage for legal fees and any settlements or judgments that may arise as a result of those claims. It is designed to safeguard the policyholder from financial losses due to their responsibility for such incidents.

While it is true that liability insurance can sometimes cover property damage, this characteristic is also present in other types of insurance, not exclusive to liability. Coverage for theft of personal items typically falls under different types of insurance, such as homeowners or renters insurance, rather than liability. Lastly, limiting coverage to only health-related claims is not applicable, as liability insurance focuses primarily on legal responsibilities and claims rather than health care costs.