Liability Insurance Coverage
Most insurance policies, whether they underwrite a car, home, or business, will include and outline a section called "Liability Insurance Coverage." This type of insurance comes in many forms, depending on your needs and particular situation and will include liability limits.
Your auto or home insurance policy is required by your state insurance code to include liability insurance coverage to protect you against an accident that is your fault. For instance, a car crash that you caused means your insurance company must pay the damages to the other parties involved. If, for some reason you don't have liability, then you will be required to pay any damages incurred from the accident out of your own pocket.
If you carry liability insurance on your home or personal property, then in case if a fire or theft, your insurance company is required to replace your home or belongings at a price or rate outlined on your policy when you signed it.
If someone is hurt or killed on your property due to an accident or fire, your liability insurance will cover the damages according to your liability limits. If you rent an apartment and you cause a fire damaging other apartment units, your insurance might also cover the other occupant's personal property losses.
But when you own a business, whether it is global, or you work from home, liability insurance is an important consideration. A business owner purchases what is called a "General Liability Insurance" policy. It will have limits, usually beginning at $1 million to protect the business and its owner against possible devastating lawsuits.
Liability insurance is also sold for other specific reasons. A business owner might need a professional liability insurance policy, which would include coverage for medical professionals.
A commercial liability automobile insurance policy is recommended to anyone who uses a commercial vehicle, for instance a trucking company, and who drives those vehicles for hire or for profit.
A commercial multi-peril liability insurance policy is also available for large businesses with more than one employee who could be hurt or killed while working on your work site or business property.
If you do carry liability insurance and an accident occurs, the insurance agent who handles your liability insurance will provide the required information and handle whatever actions are necessary to protect you.
In case of a lawsuit or claim filed against you, the agent will provide all necessary paperwork on amounts approved for payment to the claimant and judgment or settlement amounts on those claims.
A reputable insurance agent who offers you protection with a good liability insurance policy is sometimes worth more than the money you work for.