What Does Liability Insurance Cover?
Buying insurance should not be a one sided strategy. While we all know that risks could happen to us, it is also possible that we could cause the risk to others and when we do, we become liable. That is where liability coverage comes in. it protects you against liabilities. So, what does liability insurance cover? While different insurance products cover you against specific dangers, we can categorize liability insurance coverage in a more understandable manner. Knowing what your liability coverage could protect you from is a great way to understand how to make the best selection.
What does liability insurance cover? Bodily injuries- your 100 year old tree fell on the other side of the fence and the branches scratched the arm of a child who was innocently playing on the neighbor’s lawn. You are liable. Your janitor failed to put a wet floor sign on the freshly mopped or waxed area and a mother carrying groceries slid and fell. You are liable. Your car brakes got jammed and even if you tried to slow down, you still hit the pedestrian crossing the street. In such situations, the affected people will make a claim for bodily injury. What does liability insurance cover? The medical expenses are generally covered. You have to get sufficient coverage for bodily damage since hospitalization costs are very high and medications are also pricey.
What does liability insurance cover? Property damage- you were driving a car and your brakes failed and you hit the gate of a homeowner or a business establishment. You have to pay for those repairs. Your fence fell and while nobody got hurt, the price-winning garden of your neighbor got damaged and the expensive flowers were ruined. You have to pay. What does liability insurance cover? The repairs and damages that you have caused directly or indirectly will have to be addressed since it is still your responsibility even if you did not mean the accident to happen.
What does liability insurance cover? Legal fees- a disgruntled client thought that your product was a scam and she filed a lawsuit against you since she thought she was ripped off. A client also sued you over malpractice. You will have to pay for your legal expenses to defend yourself. What does liability insurance cover? The legal services that you get should always be addressed. For such situations, expect that the premium you need to pay will be pretty high. Legal services are pricey but necessary if you feel that you are on the side of justice.
Settlement costs- so you tried defending yourself but you failed this time. The court agreed on the client’s side and you have to pay an amount as damages for the customer or client. What does liability insurance cover? The settlement costs in which they will pay the amount as agreed upon by the court. Imagine if you do not have liability coverage, you would have paid for it with your own money. The damage has been done and you have to start over again. Nonetheless, you know that you can still recover thanks to your insurance coverage.
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