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Definition Liability Insurance - indemnification insurance that protects the insured from financial loss for his or her unintentional acts or actions.
Application in Divorce Homeowners and motorists routinely carry liability insurance to protect themselves from liability in the event on mishaps on their property or while driving.

Liability insurance creates a pool and spreads the risk over all the members, thus protecting them individually from catastrophic loss in the event of a mishap.

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