Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The primary purpose of the Liability coverage section in an insurance policy is indeed to cover injuries caused to others when the insured is found negligent. This coverage is essential as it protects the insured from financial loss resulting from legal claims made against them due to their actions or inactions that lead to harm or injury to a third party. Liability coverage is critical in situations where the insured might be held responsible for damages, including medical expenses, lost wages, or other costs incurred by the injured party. This protection helps ensure that the insured does not face overwhelming out-of-pocket expenses in the event of a lawsuit.

The other options, while they represent valid types of insurance coverage, do not pertain specifically to the Liability coverage. For example, property damage coverage protects the insured's own property against damage or loss, theft coverage addresses losses resulting from stolen items, and unemployment protection relates to safeguarding income in the event of job loss. None of these options capture the essence of what liability coverage is designed to address.