Get an Idea About Types of Liability Insurance

by Debbie Harry

Liability-insurance protects policy holder from the risks of liabilities that is imposed by the lawsuits. This policy is important for medical practitioners and business owners for those who may held legally liable for the injuries of others. There are many types of liability insurance, such as:

General liability insurance: This type of insurance protects business from injuries sustained by employees, damage caused by employees and other type of issues. A company is protected by this policy from third party claims.

Directors and officers insurance: Directors and officers of the companies are protected by this policy from lawsuits regarding their performance with in a company or organization. This insurance policy protects the company, in which responsibility of statements, actions, failure to take the right decisions is given to the officers and directors.

Employer liability insurance: Employer liability insurance policy is also called as workers’ compensation policy. This policy is compulsory for some businesses in some places. This policy provides the protection to the employer claims made by employee in case of accidents, injury or fatality that occurs to the employees, caused by performing duties of the job. It covers the cost of an employee’s medical expenses for injuries.

Professional liability insurance: This policy protects the professional practitioners from claims which are made by their clients or patients, if they get any financial loss or injury, because of those professionals negligence. Financial protection from lawsuits about their profession is provided by the pro liabilities insurance.

However, businesses or individuals are protected by the liability insurance from risk where they are highly vulnerable to lawsuits for their negligence or malpractice.

One Comment to “Get an Idea About Types of Liability Insurance”

  1. The legal costs of a defense normally do not affect policy limits unless the policy expressly states otherwise this default rule is useful because defense costs tend to soar when cases go to trial…… Usually this is done by sending a copy of the along with a cover letter referencing the relevant insurance policy or policies and demanding an immediate defense..The insurer may decide that there is no coverage under the policy and deny the claim meaning that its insured must defend itself defend the case unconditionally or defend only under a reservation of rights.