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Liability insurance (either a standalone commercial liability policy or the liability portion of a homeowners or renters policy) will defend the named insured if they are sued. If you have another entity that could be sued (a corporation or LLC for example) make sure that entity is named on some liability policy as either a named insured or an additional insured. If an entity that is not named on a policy is sued they usually are not provided protection from that policy (there are some exceptions to that statement – like children for example). 

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