Liability insurance has a big impact on how tort law works. It affects who can be sued, how much money can be paid out, and even changes the rules of the game. For most people and companies, having liability insurance is like having automatic responsibility for accidents. The amount of insurance you have also limits how much money can be paid out in a lawsuit. Lawsuits are often shaped by what insurance covers, and insurance companies can influence how cases are handled. Overall, liability insurance plays a major role in how tort law actually works in practice.