Which type of insurance specifically protects against harm to third parties?

Liability insurance is specifically designed to protect individuals and businesses from claims made by third parties for injuries or damages they have suffered due to the insured's actions or negligence. This type of insurance covers legal costs and payouts for which the insured may be responsible. It provides essential financial protection, ensuring that the policyholder can meet legal obligations that arise from such claims without incurring significant personal expense.

On the other hand, property insurance focuses on protecting the insured's own property against risks such as theft, damage, or loss. Commercial insurance is a broader category that can include various types of coverage for businesses but is not exclusive to third-party harm. Health insurance is aimed at covering medical expenses for the insured individual, rather than addressing liabilities to others. Thus, liability insurance is distinct in its focus on covering claims made by third parties, making it the correct choice in this context.