Any type of insurance policy that provides protection to an individual or business against the risk of being legally sued and held legally liable for injury or damage of property caused because of negligence, is called liability insurance policy. It cover legal costs and pay compensations for claims made against insured by third party.
There are many types of liability insurance are offered by various service providers of which basically there are 5 important types of liability insurance:
(a) Employers Liability Insurance:
In this type of coverage, if the employees get injured while working, the policy pays for the medical expenses and the legal fees and the compensation to the employees.
(b)Public Liability Insurance:
Public Liability Insurance is a part of general insurance to protect insured from risks of liabilities imposed by law suits and similar claims. It protects the person who is sued for claims that come with in the coverage of insurance policy. Liability insurance is originally designed to offer specific protection against third party claims, i.e., the insurance company will directly pay the compensation to the third party not to the insured. It is also important to have employers liability insurance as it covers the claims made by the employees of a business in the case they are injured or their property is damaged with in the factory or office premises.
(c)Product Liability Insurance:
This type of insurance is specially designed for the purpose of businesses involved in manufacturing. It protects the small business from any lawsuits raised, if its products causes bodily injury or death of a customer. This insurance will also cover in case, if the customer files a lawsuit for manufacturing defective products.
(d)Professional Liability Insurance:
This professional insurance cover is useful for dentists, doctors, insurance agents, architects, and similar professionals. This insurance protects the professionals from lawsuits due to negligence, errors and omissions.
(e)Director’s and Officers insurance:
This type of insurance coverage protects director’s and officers from any lawsuits against the officehttp://www.blogger.com/img/blank.gifrs because of mismanagement decisions. It also includes board members and the management staff. Bodily injury or property damage will not come under this policy.
The other types of liability insurance includes:
There are many types of liability insurance are offered by various service providers of which basically there are 5 important types of liability insurance:
(a) Employers Liability Insurance:
In this type of coverage, if the employees get injured while working, the policy pays for the medical expenses and the legal fees and the compensation to the employees.
(b)Public Liability Insurance:
Public Liability Insurance is a part of general insurance to protect insured from risks of liabilities imposed by law suits and similar claims. It protects the person who is sued for claims that come with in the coverage of insurance policy. Liability insurance is originally designed to offer specific protection against third party claims, i.e., the insurance company will directly pay the compensation to the third party not to the insured. It is also important to have employers liability insurance as it covers the claims made by the employees of a business in the case they are injured or their property is damaged with in the factory or office premises.
(c)Product Liability Insurance:
This type of insurance is specially designed for the purpose of businesses involved in manufacturing. It protects the small business from any lawsuits raised, if its products causes bodily injury or death of a customer. This insurance will also cover in case, if the customer files a lawsuit for manufacturing defective products.
(d)Professional Liability Insurance:
This professional insurance cover is useful for dentists, doctors, insurance agents, architects, and similar professionals. This insurance protects the professionals from lawsuits due to negligence, errors and omissions.
(e)Director’s and Officers insurance:
This type of insurance coverage protects director’s and officers from any lawsuits against the officehttp://www.blogger.com/img/blank.gifrs because of mismanagement decisions. It also includes board members and the management staff. Bodily injury or property damage will not come under this policy.
The other types of liability insurance includes:
- Sexual abuse liability
- Automobile liability
- Employment practices liability
- Fiduciary liability
- Liquor liability
- Terrorism liability
- Foreign liability
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