Which of the following best describes the term "liability insurance"?

Liability insurance is specifically designed to protect individuals and businesses from the financial repercussions associated with legal claims and lawsuits that may arise from injuries or damages inflicted on others. This form of insurance typically covers legal fees, settlements, and judgments if the insured party is found liable.

By focusing on protecting against potential legal liabilities, this type of insurance is crucial for individuals, such as homeowners and drivers, as well as businesses, enabling them to mitigate risks associated with third-party claims.

The other options relate to different types of insurance: damage to personal property, health expenses, and travel-related incidents, which do not provide the same kind of protection against legal claims as liability insurance does. Therefore, the best description of liability insurance is its role in safeguarding against lawsuits and legal claims, confirming that option B is the most appropriate choice.