We all live in the society where uncertainties are at its peak and none of us knows when a financial help is needed. For such an environment, insurance works as a safety jacket for protecting an insured from the various financial crisis that may arise anytime. There are different types of insurances available to safeguard one from health issues, home burglary, car accident or vehicle damage, etc. These are some of the most common insurance policies, but there are insurance policies that are specific in nature.
These specific insurance policies provide coverage against certain issues and hence are not generic in nature like life insurance policy or insurance plan for health. One such special insurance policy is Liability Insurance policy.
An Overview of Liability Insurance:
Liability insurance is an insurance that provides protection to individual and/or business against risks that they may be held legally liable to. In simple words, if an insured is liable for the injury or damage to any third-party (can be property or person), the insurance company financially compensates those losses. Generally, a liability insurance policy offers cover for both legal payouts and legal costs for which the insured is held responsible for. However, the contractual liabilities and intentional damages are not covered by most of the liability insurance policies.
Why is Liability Insurance Needed?
The liability insurance policy is for the companies or individuals who held legally liable for the injuries or other issues. This type of insurance policy is most suitable for doctors, hospitals, or business owners. For example, if a product manufacturing company sells a product that does damage to other people or products, then this manufacturing company may be sued for the loss or damages caused by its product. However, if this manufacturing company is procuring a liability insurance policy, then the loss or legal costs will be covered by the insurer.
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