What is a ‘Liability Insurance’?
Liability insurance is an insurance policy that protects given individuals or organizations from any form of risk that they may be held legally liable for. Some of the risks may involve things like product misinformation, intentional malpractice, employee injuries or even professional negligence.
These insurance policies may also include cover of both legal fees and any legal payouts which may be directed by legal courts if the insured is liable to pay some form of fines.
Some of the most common types of liability insurance policies from best us insurance brokers miami include:
•Employer’s liability and workers’ compensation.
•Product liability cover.
•An umbrella liability cover.
•Director and officer liability insurance.
•Comprehensive general liability insurance.
•An umbrella liability cover.
•Commercial liability policy.
Why Should You Get a Liability Insurance Policy?
At most time business owners and individuals get exposed to a great range of liabilities which can get some of their financials to substantial claims. All organizations and individuals need to have in place a legal financial protection plan for the following basic reasons.
1). One should take a liability insurance policy in order to protect him or herself from legal liabilities that may arise from his or her actions such as negligence and careless mistakes which may in turn lead to financial or asset penalties.
2). A liability insurance policy will ensure that you get cushioned from financial implications that may arise from negligence or mistakes that your family members covered in your policy are liable for. Individuals with such an insurance policy will ensure his or her financial position is indemnified after a risk involving family members in the cover.
3). Organizations with pools of employees should take policies that protects their business and assets from liabilities that arise from employee injuries or even death while on duty.
4). Manufacturing organizations that do produce any form of products or services for sale should get liability insurance covers from liable eventualities that may arise from the shortcomings of their products or service.
5). With a commercial liability insurance, organizations can get insurance coverage from legal lawsuits that are filed for employee injuries, damages on third party properties caused by employees of the organization and even contractual matters. Such a policy can also extend to cover legal fees for the proceeding that ensue.
6). For homeowners and landlords liability insurance covers are a must to protect oneself from eventualities like accidents that may occur in premises owned and rented out.
7). Board of directors for multinational companies should take liability insurance policies that protect them when their parent company gets sued. While a company can be sued as a legal person separating it from its employees, a director and officer’s insurance does ensure extra cover from most loopholes of basic company law.
Liability insurance is always recommended for persons who have a net worth to protect and possess an above average risk of being sued over time. Costs of getting insurance covers are never appealing to anyone especially remembering that sometimes you are paying for eventualities that may never occur. But remember, ‘better prevention than cure’.