Liability Insurance

Liability insurance protects and assures you against financial loss if your negligence, your actions, or the condition of your property is found to cause a person to be injured or killed, or a person's property to be damaged or destroyed or they suffer loss as a result of relying on your services or advice.

Liability Insurance

It is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits or similar claims. It protects the insured in the event he is sued for claims that come within the coverage of the insurance policy.

There are mainly three forms of liability insurance:

  • Professional indemnity.
  • Product liability.
  • Public liability.

Liability products are commonly taken out by businesses for risks involved in their day-to-day operation, but they are also built into many property insurance policies, for example liability cover in home and contents insurance.

Liability insurance covers two major financial risks as one is the legal cost of defending a claim and second is the compensation that you may be directed to pay the injured or wronged party, plus their legal costs, if a claim against you is upheld.