In order for liability insurance to respond, which condition must be met?

The correct answer highlights a fundamental principle of liability insurance: the insured must have caused the damage for the policy to respond. Liability insurance is designed to cover the costs associated with claims arising from the actions of the insured. This means that there has to be a direct link between the insured's actions and the resulting damage or injury in order for the insurer to be obligated to pay for those damages.

In general, liability policies operate on the premise that if an individual or business is found liable for causing harm to another party, the insurance will take effect to cover the costs associated with that liability, as long as the claim falls within the coverage provisions of the policy. Therefore, establishing causation is crucial for liability coverage.

The concept that the damage must be accidental is relevant but does not strictly define the trigger for liability coverage since intentional acts can sometimes be excluded based on the policy terms. Similarly, the notion that losses need to occur outside designated areas or that damages must exceed the policy limits does not represent a necessary condition for liability to respond. Instead, liability coverage relies principally on the relationship between the actions of the insured and the resultant damages or injuries.