Legal Question in Wills and Trusts in North Carolina

Liability against what???? What would the estate be doing that it needs insurance?

The executor posts a bond, if required, which protects the heirs/beneficiaries of the estate from any loss. There generally is no need for any kind of liability insurance (like errors & omissions or malpractice insurance). The estate is not engaging in any activity.

The executor should NOT be driving a car owned by the decedent and neither should anyone else. The car should be transferred to the new owner and they can get their own liability insurance. If there is a house owned by the deceased it would depend on if the dead person was married. Most houses that are jointly owned with a spouse would pass automatically to the spouse so there would be no need to insure it. However, if there is no spouse then a house or any other valuable assets should be insured. If items are mortgaged (like a house) or financed (like a car) the lender requires that the items be insured to protect against loss. As executor, you would contact the insurers and arrange for something to continue or get your own insurance if the items cannot be distributed right away.