What Does Liability Insurance Protect You
Generally speaking, liability insurance protects you against great loss relating to
various issues and circumstances. This includes both the known as well as the unforeseen situations. And that
is if the policy holder has been found responsible for the latter. This is a special kind of insurance
coverage that is available for both companies as well as individuals who are seeking protection for their
assets which can include properties, status, as well as well being. It is specifically designed in order to
offer protection in various forms to the policy holder.
Types of liability insurance
While it is true that the kind of coverage will be similar for the individual as well as the
business liability insurance, the difference lies in the maximum points for which liability insurance
protects you against. There are different types of liability insurance available in the market today. The
most common type is the general liability insurance that can be availed by both individuals as well as
businesses. So for you to make the right call on this, you must make sure that you sort this out with your
Liability insurance protects you
against various forms and scope of circumstances depending on the policy that you got. But if you
want the best and most comprehensive protection possible, you can go for the umbrella insurance policies. These
give you protection against claims and circumstances which are beyond the maximum points set for most of the
policies for general liability insurance. More than that, these umbrella policies can also give you and your assets
protection even in extreme situations. Given that, this type of coverage is definitely of great help for businesses
which have a lot at stake. An example of this would be big companies who have been in operation for a long
Who needs liability insurance?
The major aspect that liability insurance protects you against is great losses through third
party claims and costs. Given that, it is not surprising that this is actually one of the most popular and in
demands types of insurance coverage today. This is especially true for companies and corporate accounts. From
business executives who own and/or operate small businesses to those who have a medium scale enterprise or
even a large corporation, all of them have realized the value of investing in liability
Coverage of liability insurance
There are generally three categories of issues and circumstances for which liability insurance
protects you against. One of these is third party losses. These losses can include damage to property,
physical injury or any other type of situation which was brought forth by the advertising made or activity
done by your company. A resulting situation due to the day to day operations of your business is also
included here. You must keep in mind, however, that there is nothing that can stand in the way of a customer
from issuing a legal claim against a third party loss. Hence, you should be meticulous about this coverage in
your liability insurance policy.
This essentially means that liability insurance protects you against losing all of your assets,
especially in tough financial situations. Say for instance, in business. Liability insurance will protect
your personal finances as well as assets in the event that a third party files a lawsuit against you.
However, you must take note that the coverage will not give you protection from any lawsuit as a policy
holder. A third party claimant will have no access to your personal bank accounts, assets and finances to pay
for the damages or any other form of remedy that may be sought.
Last but not the least, liability insurance protects you against intangible issues. This
includes the likes of slander, libel and privacy violations among others. So say for example, you are a
business owner, this type of insurance will give you protection against personal damages when a third party
sues the company for libel and slander. But what you must remember here is that not all types of liability
insurance give this type of coverage. So it is best to ask your agent as to what policy or type of
liability insurance protects you against these circumstances.