What is liability insurance?

There are many different types of insurance contracts, but liability insurance is one of the most popular because it costs much less than many other options. For example, with regard to car insurance, liability insurance costs are much less than full coverage. The reason is that full coverage insurance must pay both for your vehicle and for any other vehicle involved in a collision, as well as property damage and medical expenses due to injury to you or other party.

On the other hand, the liability insurance is responsible only for the loss of the other party. Your person and your assets are unprotected, but liability insurance protects you from being responsible for the damage to the other party.

There are different types of liability insurance, including general liability that works in almost the same way as automatic liability insurance, but includes businesses. General liability protects the company from third -party demands. In addition to the general liability, there is also aboutD Response D&O, employers' liability and professional liability insurance. The whole society should not be responsible for the statement, conduct, inability or other mistakes that are the responsibility of an officer or director.

Liability for employers is also known as the Worker's Comp, and it is a mandatory form of liability insurance that all businesses must bear. Although it sounds as if it were intended to protect an employee, which is done to some extent, it is actually protection for the employer in the event of an injury, a disease related to work or other damage for which the employee could sue.

Professional liability is similar to illegal insurance, although the coverage may not be a comprehensive as some policies of neglecting practices in various fields. The purpose of insurance of professional liability is to protect those that are considered professionals or “experts”In a given area that cannot be protected by general responsibility for their expertise. When a person is perceived as a professional, he is held at a higher level, and therefore is often considered to be more responsible for his clients. As a result, it needs more coverage than general liability insurance.

The simplest definition of liability insurance is insurance that protects a person or entity from the claims initiated by another party.