What type of insurance covers legal expenses associated with defending against lawsuits?

Liability insurance, also known as legal expense insurance, is designed specifically to cover the costs associated with defending against lawsuits. This type of insurance typically provides a range of legal protections and can cover attorney fees, court costs, and any settlements or judgments that may arise from a lawsuit. It serves as a crucial financial shield for individuals and businesses facing legal action, allowing them to manage the potentially overwhelming expenses that come with legal disputes.

Homeowners insurance generally focuses on protecting the policyholder's home and personal belongings, as well as providing some liability coverage for accidents that occur on the property, but it doesn't specifically cater to legal expenses related to lawsuits. Life insurance primarily provides financial support for beneficiaries upon the insured's death, while health insurance is aimed at covering medical expenses incurred from health-related issues. Neither of these two types of insurance includes coverage for legal expenses associated with lawsuits. Therefore, liability insurance or legal expense insurance is the most appropriate choice for covering legal defense costs.