Liability insurance is a crucial aspect of any insurance policy. It is an insurance policy that protects you from legal liability arising from a claim filed against you by a third-party. Your third-party can be anyone from your neighbor, pedestrian, client, or even a customer. Liability insurance covers a wide range of areas, but it is essential to be familiar with the specifics of the coverage. In this blog post, we will learn more about understanding liability insurance.

Understanding Liability Insurance

Coverage for Bodily Injury – Liability insurance provides coverage for bodily injury caused to a third-party due to your negligence or mistake. For instance, if your pet dog bites someone, or you accidentally spill a cup of coffee on someone, then the victim can file a claim against you. The liability insurance will cover the medical bills, the compensation, and even the legal fees if there is a need for a lawsuit.

Coverage for Property Damage – Liability insurance also covers property damage caused by your negligence or mistake. For example, if you accidentally hit someone’s car while reversing your vehicle, then they could file a claim against you. Your liability insurance will cover the repair expenses. In case of total loss, your insurance may pay for the full value of the property you damaged.

Coverage for Personal Liability – In case you encounter any personal liability, then liability insurance covers that too. For example, if you are entertaining guests at your home and one of your guests gets injured, your liability insurance can cover the medical costs if they sue you.

Coverage for Product Liability – Businesses that make and sell products are at risk of product liability lawsuits. If a customer was injured by a product, they bought from your business, then they can sue for compensation. The liability insurance will cover the legal fees, medical bills, and any compensation to avoid devastating a business from bankruptcy.

Coverage for Professional Liability – Professional liability insurance, also called errors and omissions or malpractice insurance, provides coverage if a client sues you for professional negligence. For instance, your client may sue you for not delivering what was agreed upon, or poor customer service. Professional liability insurance works well for businesses providing advisory services such as medical practitioners, accountants, and lawyers.

Understanding Liability Insurance Is Important

Liability insurance is an important policy that provides coverage in case of any legal action filed against you. It covers property damage, bodily injury, professional liability, and personal liability. Having proper liability insurance can prevent unwanted financial adversities and protect your assets. If you need more information, contact our Greenville insurance team about the specifics of your policy coverage.

Disclaimer: This article is not expert advice.