Understanding Liability Insurance


Liability insurance is any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. And the insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable.

And this type of insurance is mostly about identifying and managing risks and potential hazards that can destroy you or your business, and causing serious damage that can be costly and time consuming to repair.

There are various types of liability insurance coverage offered by the insurance companies. And it’s important to get the suitable liability insurance as per your needs. You can do so by understanding the basics of the many types of liability coverage which are.

Personal liability this cover protects you against claims made by others against you. These claims may arise at your private residence or away from your private residence.

Professional liability coverage gives protection to professionals against any claims, such as medical practitioners who may be held legally liable for the injuries of others.

Product liability coverage will cover you against any damage or injury due to products.

A product manufacturer may purchase product liability insurance to cover them if a product is faulty and causes damage to the purchasers or any other third party.

The employer’s liability coverage covers the employee with protection while on the job. It’s coverage that’s usually enforced by the law if an employee is injured during business operations.

And even car insurance covers some form of liability insurance through Third party car cover for damages to another person resulting from an accident you cause. If you’re found to be at fault in an accident, liability coverage will help you pay for damage to another person’s property (this is called property damage liability) or for costs associated with their injuries (known as bodily injury liability) that you’re responsible for.


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