Liability Insurance

Liability insurance covers claims, as well as, litigation as a result of bodily injury and other physical injury or property damage. It can be a standalone insurance or part of a package deal with property insurance.

Without liability insurance, your business may suffer irreparable financial harm if a claim is made against your business and even if the claim does not result in a law suit, all may be lost paying a settlement to a claimant. Liability insurance will cover the premises of your business in the event of claim or litigation due to negligence, whether the claim has a basis of merit or even if the claim is found to be fraudulent.

Liability insurance protects the effort and energy that goes into building a business whether it is a multi employee company or a one person show. If you are found to be negligent or liable for injury, loss of property or damage, financial loss for a client, health or reputation, liability insurance has you covered. In the event of a lawsuit and the ensuing litigation, liability insurance will keep your business in operation and protect the company assets.

Liability insurance and property are sometimes packaged together for the purposes of business coverage. The two forms of insurance work hand in hand to protect the property where the company conducts business and the business itself. Liability insurance also covers the theft, damage or destruction of company’s electronic system including the software as well as the hardware. This is especially helpful if the deliverable to the client is an electronic file containing company and product information. Clients will sometimes require liability insurance to be in place as an element of the contract to do business.

Homeowners are provided with a level of liability insurance when they purchase insurance for their home. This covers the homeowner in the event a visitor to the property is injured as a result of negligence on the part of the homeowner. Such insurance will cover the legal cost of defense for the homeowner who finds themselves in court as a result of legal action. Homeowners may wish to increase their level of liability insurance depending on the activities that might take place on their property. For instance, if the homeowner has a swimming pool and invites others to use it that may warrant an increase in liability insurance.

To increase liability insurance for the homeowner means to homeowner purchases an additional policy specifically for liability insurance or increases the level of liability on their homeowner’s policy. It will be necessary to check if there is a maximum amount of liability insurance that can be taken n their homeowners policy.

Additional liability insurance will never hurt the home owner or business owner, unless it creates a financial hardship to do so or others know you have an increased level of liability insurance and decide to take advantage of it with some crazy, frivolous lawsuit they hope results in a huge settlement. Be sure you understand just what your insurance covers and does not cover when purchasing liability insurance.