What is personal liability insurance coverage?
The definition of personal liability insurance is: coverage which protects the policyholder against claims of personal negligence or actions of the insured which are inappropriate; resulting in damage to another person’s property; or causing bodily injury.
Personal liability coverage comes in all forms. Most persons who drive are familiar with the term as it applies to their standard automotive policy. Professional career policyholders carry coverage in order to protect against financial loss from claims associated with their chosen profession.
Small businesses and other commercial enterprises as well as residential dwellers generally carry some form of personal liability insurance; and if not, should do so. To simplify the definition of personal liability coverage even more it may be stated: Personal liability insurance covers the insured against loss(es) which arise from damage or injury to property or another individual (respectively).
Using general personal liability insurance pertinent to commercial enterprises as an example: such insurance covers the cost of defending claims (whether true or fraudulent) which pertain to bodily injury suffered by the company’s employees; or the organization’s clients. Additionally, a general (commercial) liability policy will protect the company (who takes out the coverage) against damage to property; any form of personal injury resulting from defamation; advertising injury; and liability as to operations pertinent to the workplace/company location.
A general liability policy, as it pertains to business is a very basic policy. Items covered under a general commercial policy include: a) cost of medical treatment; and care claimed by the injured party; restitution with respect to loss of services; compensation for physical damage to another individual’s property; compensation to clients for loss in the way of using products manufactured by the (policyholder’s) company; and payment for losses suffered with respect to loss of company services.
The basic general liability policy used for commercial businesses also covers: a) the cost of the business’s legal defense (relative to the claim); b) provides protection when a company publishes non-precise information pertinent to (company) promotion and advertising; c) and copyright infringement (amongst other forms of loss).
Auto liability insurance
Liability insurance for automobiles is a requirement in most states in America. By contrast, a comprehensive vehicle policy is not a state mandate. The liability insurance policy primarily covers damage due to your error; pertaining to other parties or autos (involved in an auto accident). The most common coverage, with regard to a standard auto liability insurance policy includes protection as to bodily injury; and automotive damage. Other forms of coverage is specific to the insurance company.
Homeowners liability insurance
The liability insurance policy relative to homeowners will cover any type of personal injury incurred by an individual when performing work on your property. Loss covered (also) includes damage(s) with respect to the property of another party caused by the policyholder. In other words, the homeowners liability policy will cover damage with regard to property as well as bodily injury.
Contractor’s Insurance
Liability insurance with respect to contractors provides the contractor protection (against financial loss) for property damage; or injury caused to another part as a result of the contractor’s negligence at the job-site. Contractors liability insurance is legally required in the majority of states.
In summary:
Conclusively, personal liability coverage protects the policyholder from claims of other parties which result from the holder’s negligence or error. Further, such claims covered may be valid or non-valid.