Monday, April 15, 2013

Understanding liability insurance and its types

Insurance provides financial protection to the insurer from unknown and unfortunate events. There are different types of insurance such as life insurance, auto insurance, jewelry insurance, home insurance etc.

Liability insurance is one of them and most of the companies provide it. So finding an NY based insurance company that deals in liability insurance is not a difficult task.

It offers financial protection to businesses, organizations and individuals who fear that they may be sued for causing any potential harm to any individual. If according to a settlement or court's verdict, you are found to have harmed someone, this would help you set things right. It would help you pay majority of legal bill during court case trips.

Liability Insurance types:

Auto Liability: This insurance provides protection to the car drivers in two ways. First is body injury insurance which provides compensation to the insured if he has physically hurt someone during a car accident. The other type is protection against property damaged in the accident. If the driver has damaged the vehicle of other person, the person will be compensated to a certain limit.

Individual Liability: This category of insurance provides financial security to both individuals and families. It helps in situations; where a person sues a family or a person for causing harm during his/her stay on their property. In case a person harms someone personally or via his/her property, the person will be compensated. For example, someone harmed by the insurer's dog is one such scenario.

Professional Liability: This is a scenario where a professional who deals in rendering services is sued by his clients for any potential negligence while offering the service. There are always chances of clients suing the person for any malpractices. In such cases, this insurance would help them financially. One example would be doctor's insurance for medical malpractices.

Manufacturer Liability: A manufacturer dealing in goods such as electronics or consumers items can be sued by their customers. This happens if the product is found to have harmed someone physically or has not delivered expected results.
Employer Liability: If an employer who sues his/her employee for not providing safe and adequate working condition, this insurance would help them out during lawsuits.

One can easily find a NY based company that offers good liability insurance. Also insurance has certain limits. Higher the limits more will be the premium amount. Your policy will cover you only up to a certain limit, after that you will have to bear the expenses.

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