Liability Insurance Helps Individuals and Businesses

There are many kinds of liability policies to protect individuals as well as businesses and other organizations against the possibility of causing damage to other people’s property, bodily injury or death. And such plans essentially are divided among two general types – personal and commercial.

Among common types of personal liability coverages are those for homes and vehicles. When homeowners and property owners purchase the policies, they have some measure of protection against possible lawsuits arising from damages, injuries or death due to use of the insured homes, other structures and parcels. Most homeowners insurance plans come with some measure of such protection against lawsuits, but an umbrella insurance policy will give an even greater level of coverage at relatively affordable rates.

When it comes to vehicles, liability plans are required by law in every state in order to drive legally on public roads. Such policies are separated into three segments. The first pays the cost of medical treatment for bodily injury to an individual and typically ranges from a minimum mandated amount of between $10,000 and $50,000, depending on the law in the state in which the vehicle is licensed. The next segment pays for medical costs to treat bodily injuries for more than one person and typically is double the amount mandated for injuries to one person resulting from insured vehicle’s use.

The final part of vehicle liability pays for damages to other people’s vehicles or property, such as when involved in a collision or a vehicular upset that causes the driver to lose control and possibly damage a structure or other item. Such coverage could be as low a $5,000, per some state laws. But that can leave a car owner vulnerable to a lawsuit if damages exceed that amount. In which case, an umbrella plan could make up for the difference.

For commercial enterprises, liability protection is a great necessity and purchased by every sensible business owner. Such policies can range from workers compensation insurance, which is required by law in every state except Texas, where employers can choose to opt out of such plans. Workers compensation pays the costs of medical treatment as well as wages for employees injured while working in exchange for not engaging in costly legal battles that could tie up courtrooms and leave one party suffering a potentially severe loss.

Other types of commercial liability protect those who do business with policyholders and can include coverage for damages, injuries or death arising from use of a product sold or services provided. Other types can insure against injuries occurring on covered properties or can protect the assets being cared for by a business in a fiduciary manner.

No matter which type of coverage a person or commercial enterprise might need, having at least some measure of protection is a wise move and in many instances legally mandated by state law.