What is the primary purpose of liability insurance?

The primary purpose of liability insurance is to provide financial protection against claims resulting from injuries and damage to others. This type of insurance is designed to cover the costs incurred due to legal liabilities for bodily injury or property damage that the insured may cause to another party. For instance, if someone is found responsible for an accident that injures another person or damages their property, liability insurance helps pay for the medical bills, repair costs, and any legal defense expenses that may arise from a lawsuit. This safety net is crucial as it protects the insured's financial assets from being depleted by these potential liabilities.

In the context of the other options, protection of the insured's own property falls under property insurance, which is different from liability insurance. Covering medical expenses for the insured pertains more to health insurance or personal injury protection, while reimbursement for lost earnings typically relates to other forms of coverage, such as disability insurance or workers' compensation. Thus, option C accurately captures the essence of what liability insurance is intended to accomplish.