Liability insurance exists to protect a policyholder from the risk of a loss that can occur if that policyholder is sued and held responsible for causing damage or harm to another. Things like negligence can lead to injuries, property damage, and lawsuits, which can be costly. Liability policies usually cover legal costs and any payouts legally required by a lawsuit.
This kind of insurance is especially important for businesses and individuals who have a risk of harming others in some way, whether it’s an injury caused by a car accident or a faulty product, medical malpractice, or an injury caused on the premises of a business. Payouts might include medical bills, repair or replacement of property, or other kinds of loss.
Different types of liability insurance policies exist to protect policyholders from different kinds of liability.
Who Needs Liability Insurance? Why?
Any kind of business or individual who runs a risk of injuring another person or damaging another’s property can benefit from liability insurance. In some cases, it may be a legal requirement to have liability insurance.
Construction firms require liability insurance for many reasons, including the chance that someone is injured on the construction site, or that mistakes or negligence could cause expensive setbacks.
Healthcare professionals usually require medical malpractice insurance, which is a kind of liability insurance that protects them in the case of a judgement error that causes harm to a patient.
Startups can also benefit from liability insurance, but depending on the kind of startup, it may require a specific kind of liability protection.
Bar owners have a lot of unique liability issues, from responsibility for a patron’s DUI or injuries in a bar fight to a slippery floor or a blocked exit. Liability protection insurance can help protect a bar from the costs associated with these kinds of things.
Manufacturers can also benefit from liability insurance. Consider how many product recalls you hear about in a year! Mistakes happen and negligence can cause harmful mistakes to consumers. The costs associated with these errors can be covered by liability insurance.
Find the Right Liability Insurance Policy for You
Whether you’re running a business or your job or pastime has the potential to harm another person – even if by accident – there is the potential for a loss. Liability insurance exists to protect you from these unforeseen losses. To protect yourself or your business, contact us to find the right policy for you.
