To have a claim paid under a liability policy, who must be legally liable?

In the context of a liability policy, the payment of a claim depends on whether the insured party is found to be legally liable for the damages incurred. When a situation arises that leads to a liability claim, it is the insured – the party covered by the liability policy – who must have caused the damage or injury for the insurance company to be liable for payment.

This means that for a claim to be valid and covered under the policy, there must be a demonstration that the insured's actions or inactions led to the incident in question. The policy is designed to protect the insured from financial loss related to legal liability; hence, the insured’s legal liability is a fundamental principle in determining coverage.

The other options do not apply because the claimant is the one who seeks damages but doesn’t hold responsibility for liability under the policy, the person who caused the damage might not be the insured, and the insurance company acts as a payer of claims rather than a liable party.