Insurance of liability
Liability insurance is a type of insurance coverage that protects individuals and businesses from the costs associated with legal claims and lawsuits filed against them for third-party bodily injury or property damage. This insurance coverage helps cover legal defense costs, settlements, and judgments. Liability insurance typically includes coverage for various types of liabilities, such as general liability, professional liability, product liability, and employer liability.
General liability insurance provides coverage for accidents and injuries that occur on the insured party's property or as a result of their operations. It also covers legal costs and damages if the insured party is found liable for bodily injury or property damage caused by their negligence.
Professional liability insurance, also known as errors and omissions insurance, is designed to protect professionals and their businesses from claims made by clients who allege negligence, errors, or omissions in the service or advice provided.
Product liability insurance provides coverage for manufacturers, distributors, and retailers who are held responsible for damages caused by a faulty or defective product they produce or sell.
Employer liability insurance, also known as workers' compensation insurance, covers the costs associated with injuries or illnesses that employees sustain while performing their job duties. This coverage helps with medical expenses, rehabilitation costs, and lost wages for injured employees.
Having liability insurance is important because it can protect individuals and businesses from potentially devastating financial damages resulting from legal claims. It provides peace of mind and financial security, allowing individuals and businesses to focus on their operations without worrying about the potential financial risks associated with lawsuits and claims.