What is liability insurance? You’ve probably heard about liability car insurance, but what other types of liability insurance are there?
If you own a home, property, or business, liability insurance coverage is vital for protecting your financial well-being. It can cover the costs of accidental damages caused by your company, protect your personal finances against lawsuits, and more.
If you’re wondering, “Do I need liability insurance?” keep reading to find out more about these policies. We’ll help you understand the basics.
Liability Car Insurance
Liability auto insurance, as note earlier, is probably the most well-known form of liability insurance coverage.
If you’re at fault in an auto accident, it covers the costs of property damage. This includes damage to other vehicles, homes, and other types of property.
Liability car insurance also covers the costs of bodily injuries if you’re at fault. It will help pay for the other person’s hospital bills and other medical expenses. In most states, liability insurance is required to drive legally.
Property Liability Insurance
Next, let’s talk about property liability insurance coverage. If you are a homeowner or commercial property owner, you’re going to want to invest in this type of coverage.
Property liability insurance is in place to protect you from potential lawsuits. If someone is injured on your property, they can hold you liable for damages. This includes medical expenses, pain and suffering, emotional trauma, and more.
If they can prove you are liable due to negligence, you could face thousands, if not millions of dollars in damages. This type of liability insurance is especially important for business owners.
Product Liability Insurance
If you own a business that produces and/or sells products, you need to invest in product liability insurance. What does liability insurance cover in terms of products?
If a consumer is injured by one of your products due to a defect, they could sue your company. In this case, it’s not the consumer’s fault for getting injured.
Ideally, your products should include a disclaimer if they are inherently dangerous. This should protect you in most cases if the consumer was misusing the product or was injured due to their own error. However, that won’t necessarily stop a consumer from pursuing financial compensation.
Contractor Liability Insurance
Finally, let’s talk about contractor/professional liability insurance. This type of liability insurance coverage is ideal for builders, cleaners, and any other type of in-home or on-site service provider.
Contractor liability insurance will cover the costs of accidental damages done to a client’s home, commercial property, or possessions. For example, if you go to someone’s house to install flooring and accidentally bust out one of their windows, your liability insurance policy should cover the damages.
Do You Need Liability Insurance?
If you drive a car, own a home, have commercial property, or operate a business, you need liability insruance. While no one enjoys adding to their monthly costs, investing in liability insurance can save you thousands, if not millions of dollars. Find out what types of insurance you need to protect your home, business, and assets.
And if you’re looking for more professional, financial, or personal advice, don’t go anywhere. Check out some of our other articles while you’re here. We have plenty of helpful information and insight for people like you.