Which term describes insurance that protects against loss from third parties?

Liability insurance is specifically designed to provide protection against claims arising from injuries or damages caused to third parties. This type of insurance covers legal costs and compensation payments that the insured might be required to pay due to their negligence or harmful actions. Common scenarios where liability insurance comes into play include accidents where someone is injured on a business's premises or claims arising from professional misconduct.

In contrast, health insurance primarily covers medical expenses for the insured individual's own health, property insurance protects the insured's property against damages or losses, and marine insurance specifically covers goods in transit over water. None of these types provide the same focus on protecting against claims made by third parties as liability insurance does.