Types Of Liability Insurance

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:

• Sexual abuse liability
• Automobile liability
• Employment practices liability
• Fiduciary liability
• Liquor liability
• Terrorism liability
• Foreign liability

Benefits of General Liability Insurance For Consultants

Most of the consultants think that they are at low risk but some times the clients want them to be covered with the insurance policy. If the client, employee, or subcontractor claim that business or one of the employees caused them bodily injury or damaged their property, the business may face a costly lawsuit or settlement.

Commercial general liability insurance pays for these types of claims, including defense costs, lost income for the time spent in court and any judgments that includes interest and medical expenses for an injured party. Not only it pays for the claims made by the clients but it also protects business consultants’ liability in the event of accidents at their own offices.

Generally client companies want their marketing consultants, researchers and media professionals to carry the following three types of coverage:

(a) General liability insurance
(b) Professional liability insurance
(c) Workers’ compensation insurance

Some examples of use of the General liability insurance for management consultants are, someone who is giving presentation if damages the clients property or injures someone there, and it is also useful in the situation like where a client injures himself when he trips over the rug in office’s entryway.

General liability insurance is one of the most commonly purchased types of insurance for management consultants, because for the reason if the accidents happens at consultants location or client's site it protect business from the lawsuits ans if they don't have the insurance policy they may be in danger of closing the consultancy unable to pay compensation for lawsuits.

Benefits of General Liability Insurance For Sports

General liability insurance policies protects the team, league, coaches and staff members against legal defense costs for any lawsuit that may arise because of causing a bodily injury or damage to property of third party by the sports authority or by the player due to the negligence.

The following is the list of some sports which are covered by the general liability insurance policy. archery, badminton, basketball, bowling, cheer leading, cross country, touch football, fencing, field hockey, golf, handball, inline skating, rowing, swimming, tennis, track, volleyball and weightlifting.

The coverage of this policy is applied in cases of:

• An injury is caused to participants, volunteers, and spectators
• Damage caused to rented premise
• Use of fields or practice areas
• General negligence
• Incidental medical malpractice
• Cost of investigation and defense of claims (even if they are groundless)
• Includes coverage of athletic participants

It is very important for a sporting authority to know about the general liability insurance policy providers and they should also consider amount of coverage needed by them, the financial stability and the history of the provider in paying the claims on time, policy premiums, and at same time they have to consider their own financial status.

In the past, liability coverage for sports was either too limited or too costly or not available at all. Individuals used to pay high insurance premiums which gave them the less cover. In present day world, there are many competitors who are providing best coverage at least possible rates.
The manager has to buy the liability insurance policy that covers the cost of legal action against the organization itself, as well as its directors, officers and volunteers.

Benefits of Public Liability Insurance in Health Care Industry

Public liability insurance is the only policy, which helps to get the complete protection needed for Health Care industry. With a public liability insurance plan from Insurance Company, the coverage will be provided for compensation, legal and medical expenses in the case that injury or property damage occurs as a result of the business operations, activities or products.

The advantages of having public liability insurance policy by a Health Care company are:

• Individual and Group Practice Medical Professional Liability Insurance
• Malpractice Coverage for All Medical Specialties
• Specialize in Hard-to-Place Physician’s Malpractice Insurance
• Claims Made Coverage and Occurrence Policies Available
• Medical Professional Liability for Institutional Coverage

Mental Health Liability insurance is a type of public liability insurance in which mental health professionals are protected from damages claimed by patients in lawsuits. It is important for every mental health professional to carry a public liability insurance cover.

Some of the professional mental health organizations, that offer their members liability insurance include the American Psychological Association, the Mental Health Counselors Association, the American Counselors Association and the Association of Alcohol Drug Abuse Counselors.

According to Counseling Washington State, the risk of getting sued is always present, even if it is only perceived to exist by the client. They suggest reviewing the malpractice policy of the employer to ensure there are no gaps in coverage.

Benefits of Public Liability Insurance For Manufacturing Industry

The public liability insurance policy provides public and products liability cover. Cover is provided to protect the insured against legal liability to pay compensation, claimants' costs and expenses in respect of accidental:

• Bodily injury to any person
• Loss or damage to material property occurring in connection with the business

Product liability insurance:
If the products manufactured by the company are consumed by the public and if the products damage the persons health or property this insurance will protect the owner against the claims raised by the customers.

Public liability insurance:
This insurance policy helps the business in cases where the company may be held responsible for injuring a member in the public or damaging a third person's property, by covering the costs associated with legal fees and compensation for claims.

In recent times Public Liability Insurance premiums have reduced and the premiums available currently to manufacturers are cheap, that means public liability insurance policy is affordable to every business to buy.

Public liability insurance claims are becoming more common as the public are becoming more aware of their rights. Hence, it is necessary to have a public liability insurance to protect the business from huge financial losses.

General Liability Insurance Vs Business Liability Insurance

Your assets will be protected by general liability insurance by providing a first line of defense from different claims which are caused by negligence or wrongdoing. Liability claims are covered by this insurance policy, these claims can arise because of bodily injury, property damage, personal injury and advertising injury. Compensatory and general damages are covered by this insurance company.

Business liability insurance is designed for you to keep your business in business by covering the cost of defending or settling claims.

The following basic categories can be covered by general liability insurance policy:

• Bodily injury: If there is any physical harm to an individual at your business place or if there is any injury to your employee who works at client's site, then it will be covered by this insurance policy.
• Completed Operations: If there are any losses while providing services to the customers or from manufacturing and distributing products, then such losses can be covered by this insurance policy.
• Personal injury: If there is any damage to the reputation or rights of a person or business because of the slander, libel, copyright infringement, invasion or privacy, false arrest, wrongful eviction, etc.

Advertising injury, medical payments can also be covered by general liability insurance policy.

Following coverage can be provided by business liability insurance:

• Compensatory damages: If there are any financial losses and additional monetary losses because of the claims then such losses can be covered by this policy.
• General damages: If there is any intangible losses, such losses can be covered by this Business insurance policy. It also covers penalties against your business for wrongdoing.

There is a slight difference between general liability insurance and business liability insurance policies.