Index | Liability Insurance | Liability Insurance
Understanding Liability Insurance
If future generations ever wonder what their predecessors' worst fears were, the fear to be sued would definitely rank high along with a few other most dreadful universal phobias. It is accepted to be always on the lookout for such risks. The more active and successful a person is, the greater his or her stress and fear can get. To tackle potential problems other people might bring, you will need Liability Insurance.
Liability Insurance offers protection against third party claims, which means that payment is maid to someone who suffers loss caused by an insured person. It helps protect you from being held responsible for physical or personal injuries to people while they are on your premises. Intentionally caused damage is not covered by Liability Insurance policies. On purchasing Liability Insurance you agree to pay the insurance premium. In return, your insurance company agrees to pay for expenses such as medical bills of the injured person, rehabilitative therapy, lost wages, etc. or pay money on your behalf to someone whose property you might damage. When you purchase Liability Insurance, you also get legal defense.
Frequent Liability Insurance examples are Liability Insurance for drivers, malpractice insurance, and business Liability Insurance. It is a common practice for car owners to carry Liability Insurance along with Comprehensive and Collision insurance, which protects them from losses they might cause if they get in accident. Professional Liability Insurance will cover loss from errors and negligence. Business Liability Insurance will protect your business from injury claims, advertising claims and property damages.
Liability Insurance saves your money and covers the injuries of others. However, the more coverage you need, the more expensive this insurance will get for you. Mind also that history of past accidents, malpractice or other faults greatly increases the cost of Liability Insurance.
Liability Insurance for your Business
Liability Insurance is a must for all businesses. Even if your business is not prosperous enough to make people want to sue you, Liability Insurance is essential. It covers injuries to your employees and customers as well as legal charges in case you are sued for injury caused to someone on your premises. Some Liability Insurance can cover you from claims of personal injury, such as libel or other abuse undermining your reputation. Even if you think your business does not involve anything in the least dangerous and you take all preventive measures, the right Liability coverage can be very helpful. Remember that you are obliged to pay for injuries and property damages caused by your employees. You may even be held liable for injuries that unauthorized visitors who enter your business premises might get. Thus, carrying Business Liability Insurance protects you from financial crash and eases nervous strain.
Types of Business Liability Insurance
General Liability Insurance (Commercial General Liability)
You need this coverage to protect yourself from injury or property damage claims. In the insured event you will have ample cover to protect your business.
Professional Liability Insurance
Carrying Professional Liability policy is often a legal requirement. It protects you from claims of your clients who suffer losses resulting from your malpractice, advice, errors or negligence.
Product Liability Insurance
If you produce and sell goods, service or repair works, Product Liability Insurance protects your business in the event your product causes injury or damage to another business or person. The level of risks as well as the amount of coverage depends on your business type and products you sell. Though the need for Liability Insurance is not so obvious with some businesses, the right policy can save a policyholder a lot of money in the long run.
Some of Business Liability policies include: Commercial General Liability Insurance (CGPL);
Business Automobile Policy (BAP); Employers Liability and Workers Compensation;
Manufacturers and Contractors Liability (M&C); Owners, Landlords and Tenants Liability Insurance Policy (Ol&t); and Physicians, Surgeons and Dentists Professional Liability.
Personal Umbrella Insurance
This type of insurance pays for causing harm to other people, and protects an insured person's assets. It provides coverage beyond your Homeowner or Auto policy and extends liability coverage when the liability protection on other policies is gone. If there is a young driver in your family or you are an owner of such assets as some recreational facilities, personal watercraft, or a swimming pool, the right Umbrella Insurance policy will give you the liability protection you require.
Comprehensive Personal Liability (CPL), Homeowners Insurance Policy, Personal Automobile Policy (Pap), Personal Umbrella Liability, and the Uninsured Motorist Endorsement comprise the list of Personal Liability policies.
Assessing your Liability Needs
Like any serious decision and investment, shopping for Liability Insurance requires a thorough research. You should consult organizations in your production sphere as well as small business owners to find out what types of liability coverage are often claimed for. It is important to learn the liability risks for your industry or business, take into account the recent legal actions in your industry area and evaluate the possible risks of being sued. Having determined what is necessary to insure yourself against in your current business situation, you should talk to your insurance agent or broker about the level of protection you need.
You should compare liability coverage to select the best available package of policies for you or your business. Since every person's and every business' needs are unique, finding a specialist broker with experience in your sphere or industry is well-advised.