Have you ever had a moment in your workplace where everything is not going the way you expect and you don’t know how to get yourself out of that hole?
Life can get chaotic at times from both a personal standpoint and a professional standpoint. There is a way to ensure that your life will not fall apart and instead you are protected at all times. That method is called insurance.
Of course, there are tons of insurance policies that are used for a wide variety of reasons such as car accidents or damage in your home. There is a specific type of insurance that is applicable towards accidents from business and it is called liability insurance.
What is liability insurance?
Liability insurance provides protection against claims resulting from injuries and damage to people or property. Liability insurance can also be referred to as third-party insurance. This is primarily used in a business setting.
There are certain professions who primarily use liability insurance and it includes auto insurance policies, product manufacturers and anyone who practices medicine or law.
What does liability insurance cover?
Liability insurance mainly covers legal costs and payouts for which the insured party would be found liable. This type of insurance does have its limitations in regards to coverage.
Liability insurance does not cover damage done intentionally, contractual liabilities and criminal prosecution.
Now that you know about liability insurance, let’s discuss two specific types of liability insurance which are called public & products liability insurance.
What is public liability insurance?
Public liability insurance helps cover the costs for personal injuries, loss or damage to property and death. Public liability only covers incidents on your business property. If an incident occurs anywhere else, then the coverage will not be approved.
Many businesses in today’s world are in constant connection with the general public. The interaction with the general public does come with its risks.
For example, a customer walks into a restaurant and accidentally slips and falls on a wet floor. Despite the warning signs of a wet floor, you could end up in a lawsuit
If it comes to the point that you are in the middle of a lawsuit, you can file a claim with your insurance company. It will be up to your insurance company to cover any legal costs and pay the damages up to the maximum amount from your selected policy.
Now that you know everything about public liability insurance, let’s now discuss products liability insurance.
What is products liability insurance?
Products liability insurance helps protect against any financial loss that arises out of the legal liability affected by an insured because of injury or damage resulting from the use of a covered product. It protects businesses from the fallout that occurs in the event that a product causes injury or other damage to third parties.
For example, consumers could be harmed by how a product is manufactured, designed, marketed or misused. Even if a product is used incorrectly, your business could still be responsible for any cause of damage.
Based on all the information provided above, you know everything about various types of liability insurance. Accidents always happen in life. It is important that accidents do not come with a heavy price tag.