How is the cost of medical care covered under Liability Insurance?

Liability insurance is designed to cover costs associated with injuries or damage for which the insured is found liable to a third party. This includes the medical expenses incurred by that third party due to the insured's actions or negligence. When someone suffers an injury and seeks compensation through liability insurance, the policy can cover the medical costs related to that injury, ensuring that the third party receives the necessary care without requiring the insured to pay out of pocket.

This coverage is essential because it protects individuals and businesses from the financial burden of medical costs resulting from incidents for which they are legally responsible. Thus, it directly addresses the scenario of third-party injuries, making this answer the most relevant in the context of liability insurance.

The other options do not align with the fundamental purpose of liability insurance. Direct payments to healthcare providers typically describe health insurance, while reimbursement for medical bills by the insured relates more to personal insurance policies. Option discussing losses to the insured’s own medical expenses also misrepresents liability insurance's function, as it doesn't cover the insured's own medical bills but rather those of others affected by the insured's actions.