There are multiple definitions - click on the translation that matches your context.

Haftpflichtversicherung

Substantiv

partial

third-party liability insurance

Comparative law notes

Switzerland

In the US, third-party liability coverage is the portion of an insurance policy that protects persons if they are held legally responsible for a physical injury or damage to someone else's property. It is also sometimes referred to as "legal liability coverage," That section of the policy is designed to cover costs such legal fees, the amount of money need to pay to settle a lawsuit, and other related expenses (like loss of income if the policyholder has to take the day off to go to court) up to the limits stated in the policy.