Liability Insurance

About Liability Insurance

It only takes on unintentional act and one lawsuit to lose everything that you have worked so hard to build. Given the large number of frivolous lawsuits filed nowadays, protecting yourself, your business, and your assets has never been more important. If you don't already have a liability insurance policy, it is a good idea to consider taking one out immediately.

Liability insurance covers the costs of damages, attorney fees, and any other costs associated with the lawsuit or lawsuits that may be filed against you. Because these costs and fees can add up to an exorbitant amount, this coverage proves to be quite necessary should you lose a lawsuit and end up with a judgment against you.

The only claims that liability insurance will not cover are those that have arisen from:

• Employment Practices
• Intentional Acts
• A Breach of Contract

Types of Liability Insurance

You can purchase several different types of liability insurance. Some of the most common include:

• There are two types of automobile liability insurance: bodily injury and property damage. The first covers other people's bodily injuries or death if you are responsible for an accident. The latter covers the damage your car inflicts on another person's property.
• Commercial General Liability is a common business insurance that covers liability claims of bodily injury or property damage that occurred on your premises. It may also cover slander and other similar claims.
• Employers' Liability protects a business in the event an employee alleges the employer's negligence led to an injury or illness.
• Liquor Liability was created for businesses and various establishments that sell liquor. This insurance pays for damages and injuries caused by an individual who becomes intoxicated at your establishment.
• Personal Liability is similar to umbrella insurance, this coverage kicks in when all other forms of insurance have been exhausted. Created for individuals, not businesses.
• Professional Liability protects against claims that the policyholder would be obligated to pay as a result of an error in professional work such as nurse's professional liability insurance.
• Umbrella Liability coverage kicks in when all other insurance policies have been exhausted as a result of liability claims.
• Workers' Compensation is required by law in most states; this coverage pays medical and disability claims that result from an on-the-job illness or injury.

Obtaining Liability Coverage

Because the sky is the limit when it comes to lawsuit judgments, it can be difficult to ascertain exactly how much liability coverage you need. This is why you should take the time to speak with several different liability insurance professionals prior to taking out a policy. You may also want to obtain a handful of quotes before making any coverage decisions. The premiums for this type of insurance can vary dramatically. You don't want to pay more for a policy than you have to.

Related Insurance Links

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