Types Of Liability Insurance

What is liability insurance?

There are many types of insurance and liability insurance is one of them. If you are deemed to be legally responsible for any accident, you may be liable for damage costs, including property damage, hospital and medical payments, rehabilitative care, loss of income, and pain and suffering of the injured person or persons. Liability insurance protects you from these costs if this happens ever.

In most countries it is compulsory to have liability insurance if you are at risk of being prosecuted for example: drivers, any person who provides professional services to the public, those who manufacture products that can be harmful, and those who provide jobs.

There are different types of liability insurance

There are several different types of liability insurance, a brief overview of some of them:

General Liability - protects a company from claims of third parties - which protects a company against losses caused by acts of negligence causing serious injury to property damage, the premises of the company, the prejudice to the outcome of the use of a product manufactured or distributed by the company, or a wound for the general operation of the company.

D & O liability means 'directors and officers' liability - This type of insurance protects the acts or omissions of those in an office or post. This means that the whole society should not be held liable for any actions taken by the director or officer in charge, and if the insurance is held for that person to help protect.

employer liability - This form of insurance that is required all businesses must have. It is designed to help protect the employee and the employer. It is used for which the employee can sue an employer for injury, occupational disease, related, or other damage.

Professional liability is similar to malpractice insurance - The purpose of professional liability insurance is to protect persons who are considered expert or a professional in a given field. When a person is considered a professional in a field, they are held to a higher standard and thus is considered to hold greater responsibility towards their customers and that means they need more coverage than liability insurance in general.