Liability insurance is a general word for many types of coverages that defend you or your organisation if a claim or lawsuit is made against you or your business.
It provides specialised defence against third-party insurance claims, benefiting individuals who are not the insured but have incurred losses and are not part of the insurance contract.
This third party can be a buyer/consumer of the insured’s product or service, a shareholder of the company, a government regulator, etc. In such situations, the insurance will pay the insured’s future legal expenses.*
The Workings Of Liability Insurance*
Liability insurance, at its core, offers a defence against lawsuits arising from claims of monetary or bodily damages or injuries to people or property. Liability insurance pays for any court fees and judgements that the insured party might be held accountable for.
Why I Need Liability Insurance*
Let’s imagine, for example, that you cause someone to suffer a financial loss or that someone is hurt on your property. In that situation, you can be held legally responsible for resulting costs like medical or legal bills. You can be protected from these costs by having liability coverage.
Each sort of business has different risks. Thus, the amount of coverage you require will vary. For instance, manufacturers of pharmaceutical products might require insurance with larger liability limits than producers of clothing.
Various Liability Insurance Options*
To assist in shielding your company against liability claims, you can purchase a variety of liability insurance products. Some of the most popular products are mentioned below:
Commercial insurance will assist you in paying claims if your company is found responsible for someone else’s property damage or bodily harm.
Professional Liability Insurance: If a client sues your company over errors or omissions in your professional services, this will help cover your legal fees and judgements. Errors and omissions insurance is also what this type of protection is called.
Directors and officers (D&O) liability insurance provides protection for business executives from lawsuits that may result from choices and actions they took while doing their regular duties.
Cyber insurance is a service that is offered to both people and businesses. The primary goal of this product is said to be to safeguard a person’s financial security in an unstable online environment.
Things To Consider
It is essential to take into consideration the right product choice for the type of business, as well as enough coverage in terms of the offered terms and conditions and insured sum.
Along with these, it’s crucial to carefully assess the credentials and capacity of your general insurance company when underwriting the policy and resolving claims. ^
Liability insurance is a very important type of coverage that offers protection to individuals and businesses against financial losses resulting from legal claims or lawsuits. It provides coverage for the costs of defending a legal claim and any damages awarded to the plaintiff.
^Claims are subject to terms and conditions set forth under commercial insurance policy.
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
