What type of insurance provides coverage for legal expenses related to lawsuits?

Liability insurance is designed specifically to provide coverage for legal expenses that arise from lawsuits. This type of insurance protects individuals and businesses from claims made by others due to negligence, misconduct, or failure to act, which can result in legal action.

When a person or business is sued for damages, liability insurance can cover the costs associated with legal defense, court fees, and any settlements or judgments that may result from the case. This is crucial as lawsuits can lead to significant financial burdens, and liability insurance helps mitigate these risks.

In contrast, property insurance covers damage to physical belongings, life insurance provides financial protection to beneficiaries in the event of the insured's death, and health insurance covers medical expenses but does not address legal costs. Thus, liability insurance is the most relevant option when discussing coverage for legal expenses related to lawsuits.