liability insurance

  • Insurance protecting the insured against financial loss arising out of legal liability imposed on the insured in connection with bodily injuries (or death) suffered, or alleged to have been suffered, by others, or damage caused to property other than property owned by or in the custody of the insured, or the business operations of the insured.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).