The insurance policy which provides an individual or a business protection from the risk of them being sued and held legally responsible for situations such as injury, negligence or malpractice is called liability insurance. Both legal costs as well as any legal payouts that the insured could be held responsible for, if they were found to be legally liable is covered by liability insurance policies.
There is no government sponsored form of liability insurance, it is still, however, a form of coverage that is important to have. Here are the main kinds of liability insurance:
- Personal Liability
- Workers´ Compensation and Employer’s Liability
- Product Liability Insurance
- Indemnity Insurance
- Director and Officer Liability Coverage
- Umbrella Liability
- Commercial Liability
- CGL (Comprehensive General Liability)
- Homeowner’s Insurance
Personal liability insurance is of course about you and your family´s financial protection. What it covers is bodily injury and property damage sustained by others that you or members of your family may be legally responsible for. Medical Payments to Others coverage is also included in Personal Liability insurance. It provides the payment of any medical expenses that guest who has accidentally be injured on your property may require. This is regardless of whether you are legally responsible or not.
And of course, business owners are exposed to a wide array of liabilities, any of which are able to subject their assets to claims that are substantial. This is why all business owners must have an asset protection plan in place which is built upon the liability insurance coverage which is available.
Liability insurance is crucial for anyone who may be held legally responsible for others´ injuries, this is especially true for business owners and medical practitioners. It is important to seek professional assistance in determining the type of liability insurance coverage that will best suit your needs and therefore avoid an unnecessary, and frustrating legal and/or financial issues.