By Defining Liability Insurance
Today, General Insurance is essential in our uncertain society as it provides financial protection against a variety of potential issues. Life and health insurance are the two types of coverage that people buy the most commonly.
A Brief Overview of Liability Insurance
Here are some liability insurance essentials that you, as a policyholder, need to be aware of:
How Does Liability Insurance Work?
There are a lot of unintentional liabilities that could occur even if a corporation takes all reasonable precautions to avoid them. For instance, even a minor mistake that causes a customer discontent or harm could lead to a pricey lawsuit against the company or the expert. A liability insurance policy shields people and businesses from the threat of being held accountable or sued for negligence, malpractice, or injury.
Liability Insurance Policy Types*^
- Employer’s Liability: This type of insurance covers any responsibilities an employer may have under the law if a worker gets injured on the job or while on the clock. Businesses occasionally ignore this as trivial, but if they are confronted with a claim like this, they pose the risk of going out of business.
- Third-Party Liability: This insurance plan compensates victims of losses the insured creates. The first party is termed the insured, the second party is known as the insurer, and the third party is the damaged party or the individual or entity making the claim.
- Product Liability: This type of liability insurance protects you from customer claims coming from accidents caused by the use of your goods. For instance, if a customer’s cell phone explodes while charging or harms them in any other way, they may sue the company that made the phone. Such lawsuits could cost the company millions of dollars if it doesn’t have the appropriate product liability insurance. Claims that packaged foods have harmed people’s health and well-being may be made in response to their use.
- Professional Liability: This commercial insurance shields you from the costs and hassles resulting from lawsuits filed against you or your company for failing to deliver professional services. A professional liability policy could be helpful if you have obligations that must be paid. A range of professions, including lawyers and doctors. any mistakes or omissions they make while providing the service will subject them to liabilities.
- Public Liability Insurance: Insurance Against Public Liability This liability insurance protects you from lawsuits that claim your company, its products, or its employees have damaged members of the public. Businesses in India working in hazardous areas are required by the Public Liability Insurance Act of 1991 to purchase public liability insurance. Other businesses do not have an obligation to do so, but it is highly recommended. Insurance coverage is provided for accidents, injuries, and property damage that take place on your property while conducting business.
^ Claims are subject to terms and conditions set forth under commercial insurance policy
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
