Liability Risk- Individual Risk Management

Can someone pls give me an example of a liability risk? Like it doesn’t seem so obvious to me when I read the text what it really means.

The risk that you’re drunk and you drive your car through someone else’s living room wall.

Now Bill’s example sure hits the nail. The aftermath is you had a tremendous hangover and your Car Insurer just broke the news that the third party cover is meant when you accidentally hit another car … not drive through someone’s house. At least with your Insurance cover you were immune. In this case you don’t know the extent of damage and you also do not know how you are going to fund it.