Liability coverage is a type of insurance that protects the person who is “liable” or, in other words, responsible for causing the accident. For example, if you have the Property Damage Liability coverage mentioned above, you are protected if you cause damage someone’s car in an accident. Your insurance will pay to have the car you damaged fixed. The same type of insurance is available if you want protection in case you injure someone in an accident you cause. That coverage would be called Bodily Injury Liability coverage. Again, since it is “liability coverage” protects, it protects you if you are the cause of an accident.