Liability Insurance Definition
What is Liability Insurance?Liability Insurance is an insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence.
Wikipedia defined liability insurance as a part of the general insurance system of risk financing to protect the insured from the risks of liabilities imposed by lawsuits and similar claims.
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Liability Insurance protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.
Liability Insurance PoliciesLiability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.
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Why Liability InsuranceLiability insurance is paramount to who held legally liable for the injuries of others, just like medical practitioners and business owners, where product manufacturer may purchase product liability insurance to cover them if a product is faulty and causes damage to the purchasers or any other third party.
Business owners may purchase liability insurance that covers them if an employee is injured during business operations.