Liability Insurance
What Does Liability Insurance Mean?
Liability insurance is a type of coverage that protects a person or entity against the risk of being sued and held legally responsible for malpractice, negligence, injury to others, or similar claims. In addition to covering the legal costs associated with a lawsuit, it also covers any settlements or judgments if the insured is found legally liable. However, it generally excludes coverage for intentional harm and contractual liabilities.
Insuranceopedia Explains Liability Insurance
Liability insurance is essential for business owners, professionals, and individuals who need protection against liabilities arising from their professional activities and the distribution of goods to the public. For example, medical practitioners often purchase malpractice insurance to cover the significant financial costs associated with potential lawsuits. This type of coverage falls under professional liability insurance, which is designed specifically for claims related to errors, omissions, or negligence in professional services. Similarly, many business owners obtain liability insurance to protect against lawsuits from employees who may be injured while working or during business operations. Most of these policies are structured as general liability insurance, which covers bodily injury, property damage, and related legal costs that arise from everyday operations.
