What is the primary purpose of personal lines insurance?

The primary purpose of personal lines insurance is to cover risks owned for personal reasons. This type of insurance is designed to protect individuals and families against various personal risks, such as damage to their homes, automobiles, or personal property, as well as providing liability coverage. Personal lines insurance includes policies like homeowner's insurance, auto insurance, and renters insurance, all of which cater to the needs and assets of private individuals, rather than businesses or groups.

In contrast, the other options focus on areas outside the personal coverage realm. The protection of businesses against liabilities pertains to commercial insurance, life insurance indeed targets individuals but is a specialized category separate from the broader personal lines, and managing employee insurance benefits relates to group or workplace settings rather than individual personal coverage. This highlights the distinct role personal lines insurance plays in providing financial security and peace of mind for personal assets and liabilities.