Definition of Liability Insurance: The easiest definition of 'liability insurance' is the Insurance coverage to protect against claims alleging that one's negligence or inappropriate action resulted in bodily injury or property damage.
People & organizations can and do mistakes for which they become liable if so when these acts ruled to be the cause for damaging the bodies or the properties of others. That is when insurance policies arrived at supply the protection. Liability coverage pays when the insured is legally responsible for the negligent act. In a few situations, the coverage provides protection if the insured becomes 'morally obligated' to a celebration that's damaged by the non-negligent acts of the insured.
People/ organizations vary widely within their social and business conduct, and so does the coverage that is had a need to protect them. For every group of people/ organizations you can find different coverages offering the protections. Different people/ organizations need different types/ amounts of liability coverage.
Classification of Liability
Personal vs Commercial Liability: Personal liability insurance provides coverage for folks while commercial liability provides coverage for a small business entity. A 4-door sedan car needs personal auto liability policy. If exactly the same vehicle is used for delivery, then it could need a commercial auto policy.
Personal Liability Protection normally comes in personal policies such as for example Personal Auto Policies (PAPs), Homeowners PLANS, boat policies, and Personal Umbrellas. These coverages pay for damages that the Insured causes to the bodily injuries, personal injuries, property damages, legal defense regarding the claims brought against the Insured.
Business/ Commercial Liability Protection: Involves cover businesses and/or individuals in connection with their business conducts.
Premises Liability applies when someone other than the insured or insured's employees sues the business for damages due to an injury sustained in business premises. Because of this the injured party must first suffer a personal injury on your premises, and then must claim for the damages they suffered.
Product Liability includes liability protection for business completed services or products. Similar coverage is provided under the term 'completed operations' such as for example operations of several contractors when they cause damages to others throughout their service rendering. Professional service businesses such as for example physicians, lawyers, real estate agents, and insurance agents have special professional liability coverages.
Professional Liability. Provides protection for many classes of individuals and businesses for any bodily injury damages their service/ advice could cause to others. Examples include malpractice insurance for doctors and medical staff, errors & omissions for insurance & real estate agents, etc.
Liability Insurance Brokers Kings Lynn provides coverage for employees throughout their employment. The employer has to be responsible or negligent for the coverage to kick in. In the case of Workers Compensation, fault and negligence do not have to be proved for employee to collect for any work related injury.
Director's and Officers insurance provides protection against any lawsuits contrary to the officers of the business enterprise by its owners. Garage Liability applies in situations in which a business deals with vehicles owned by others. The coverage provides protection from the risks to be sued due to using vehicles owned by the business enterprise and vehicles which are owned by others (clients.) When a business/ individual works together with or takes possession of other's vehicles, a particular coverage called "Garage Keeper Liability" is needed. Garage Keeper Liability provides comprehensive and collision coverage on vehicles NOT owned by the business enterprise while the vehicles are in possession of the business enterprise. Auto service stations, valet parking businesses, towing services, and car washes are examples of businesses that require garage liability and garage keeper liability protection. Garage keeper liability could be written on Direct Basis or Excess. In the even of Direct Basis, the policy will pay for damages of vehicles of the clients of the Insured regardless of who is responsible. Regarding Excess, the policy can pay for damages of vehicles of the clients of the Insured only when the Insured is negligent.
Liquor Liability provides protection for establishments that sell liquor (Packaged liquor, taverns, manufacturers of liquor) against loss or damages claimed as a result of a patron of the business becoming intoxicated and injuring themselves or others.
Inland Marine/ Cargo Liability provides protection for business involved with hauling merchandise and properties of others. It pays for damages of the properties hauled in case the Insured is liable for the damages.
Time Factors of Liability Insurance Polices
Some commercial liability insurance policies are written on Claim Made Basis. This means that the policy in effect at that time a claim contrary to the insured can pay for losses, regardless of when they occurred in the past. Most professional liability policies are written on Claim Made basis. Most commercial liability policies are written on Occurrence Basis, where despite the fact that the policy may have expired, provided the policy was in effect at the time that the bodily injury or property damage occurred, a claim can still be made against it.
Liability Limits
CSL or Combined Single Limit policies allow insurance companies to mix both bodily injury liability and property damage liability insurance under an individual limit. The insurance provider would pay around the stated limit on a third party claim whether or not the claim was for bodily or property damage. In Split Limit policies, the policy would breakdown limits to, for example, bodily injury limit per person and bodily injury limit per accident and property damage per accident.
Example, a car policy with CSL $300,000 will pay up to that limit for any and all claims if they are bodily injury for one person, lots of people, or property damage that was due to the Insured. If the policy limits come separated (100/300/50) it means that the insurer will pay the maximum of $100,000 for bodily injury of just one 1 person, $300,000 for bodily injuries of most other people hurt, and a maximum of %50,000 for property damage due to the insured negligent act.