What is Liability Insurance Coverage?
Rodriguez Law Group, Inc.
Date: November 25, 2024
Liability Insurance is useful in personal, business and legal matters.
It protects you or your business from financial losses if you’re legally responsible for
injuring someone or damaging their property. Legally, if a person files a claim against
the liability insurance policy for damages caused by the insured’s negligence, the policy
will cover the damages up to a certain limit.
What Liability Insurance Covers
Bodily injury – Medical expenses caused by the insured, such as a customer slip and
fall.
Property damage – Repair or replacement costs for property damage caused by an
insured, such as a car accident.
Personal injury – Defense costs if the insured is sued for non-physical personal injury,
such as libel or slander.
Where are Liability Insurance Coverages Found?
Insurance policies are available for purchase through many insurance companies. This
coverage is included in auto insurance, homeowners insurance, renters insurance, and
business owner’s insurance policies. However, in some instances, it can be purchased
separately or added to existing policies as endorsements. The insurance policy
paperwork will include the details of each coverage and their coverage limits.
Common Types of Insurance Policies That Include Liability Insurance
Auto Insurance – For individuals or businesses that drive motor vehicles.
Protects if you damage property or injure someone while driving.
Renter’s Insurance – For individuals who rent a space to live. It offers some
protection if someone is injured at your residence, and you are financially liable.
Homeowners Insurance – For individuals who own a home. Provides coverage
for you if someone is injured at your residence or you accidentally injure
someone away from your property.
Business Owner’s Policies
o General Liability Insurance – For businesses of all sizes.
o Product Liability Insurance – For businesses that manufacture, distribute
or sell physical products. It protects against claims arising from product
defects or malfunctions that result in injury or damage to consumers.
o Professional Liability Insurance – For businesses that provide services or
advice. This protects against claims that negligence, errors, or omissions
have resulted in financial losses for your clients.
Why Liability Insurance Coverage Matters
Insurance is embedded in our lives and our legal system. You cannot predict the future,
but you can protect yourself from the unexpected. Having liability insurance can help
protect you from the financial setback a lawsuit will cause. Without it, many individuals
and businesses would be solely responsible for damages or injuries that they cannot
afford to pay for. This would be an obstacle that many individuals and businesses would
have trouble recovering from.
If you have legal questions or need representation, contact us at 626-888-5206. We can
guide you through your personal injury, property damage, and civil defense matters.
Disclaimer: This is not legal advice but general educational material. This does not
create an attorney & client relationship. You should consult an attorney in your locale.
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