What is liability insurance?
There are many different types of insurance policies available, but liability insurance is one of the most popular because it costs much less than many other options. For example, when it comes to auto insurance policies, liability insurance costs much less than full coverage. The reason for this is because full coverage insurance must pay for both your vehicle and any other vehicles involved in a collision, as well as property damage and medical expenses due to injury to you or another party.
On the other hand, liability insurance is only liable for the losses of the other party. Your person and property are not protected, but liability insurance protects you from being liable for the other party's damages.
There are different types of liability insurance, including general liability, which works similarly to car liability insurance, but covers companies. General liability protects a company from third-party claims. In addition to general liability, there is also personal injury insurance, employer liability and professional liability insurance.
D&O liability means the liability of "directors and directors" and is intended to cover the acts or omissions of those who hold the office of director or director. An entire company shall not be held liable for statements, actions, inaction or other errors that are the responsibility of an officer or director.
Employer liability is also known as worker's compensation and is a mandatory form of liability insurance coverage that all companies must have. While it appears to be intended to protect the employee, which it does to some extent, it is actually a protection for the employer in the event of injury, illness, or other work-related damage for which the employee may sue the company.
Professional liability is similar to malpractice insurance, although coverage may not be as comprehensive as some malpractice policies in different areas. The purpose of professional liability insurance is to protect those deemed to be professionals or "experts" in a particular field, who may not be covered by general liability because of their experience. When someone is seen as a professional, they are held to a higher standard and are therefore often seen as having a greater responsibility to their clients. Consequently, you need more coverage than general liability insurance offers.
The simplest definition of liability insurance is insurance that protects a person or entity from claims initiated by another party.