Liability protection is an insurance policy that provides businesses and/or individuals with protection from the many inherent risks that come with providing goods and services to the general public. If a business or an individual does not procure liability insurance in advance, they may be held liable for a variety of occurrences, such as personal injury, malpractice and negligence.
When these policies are purchased, they provide coverage for the expenses that stem from the aforementioned incidents. The legal costs associated with malpractice and negligence suits can be staggering, especially for companies that did not purchase liability protection beforehand.
If the injured party files a lawsuit and a court finds in their favor, the resulting payout is also covered with liability protection. However, it should be noted that a business or individual liability protection policy does not offer any sort of coverage for damage that is done intentionally or any contractual liabilities.
Liability protection is especially important for business owners and medical practitioners. Product manufacturers should also purchase liability protection, in case their goods are faulty and cause damage to the consumer. Even if the damage is caused to a third party, the manufacturer may still be held liable.
For a business with a large staff, purchasing liability protection is imperative to the long term health of a company. If an employee is injured during their shift and there is no evidence to support their own wrongdoing, a business that has not purchased liability protection will be left on the hook for all of the employee's medical bills, as well as any judgement in their favor.
All it takes is one incident of this nature to bankrupt a business or an individual for good. Liability protection can also be purchased by homeowners who wish to protect themselves or their family members from injuries or damages that may take place on their personal property.
For example, liability protection for homeowners comes into play when someone slips and fall inside of your home. If the homeowner does not have the proper coverage, then they can be held responsible for the person's injuries and the resulting medical bills.
Liability coverage for the homeowner allows the policy holder to receive financial help if a guest in their owner sustains an injury that requires surgery and any resulting litigation. The fees that result from these incidents are covered up to the limit of the policy that you've purchased.
Liability protection is a crucial purchase to make for those who have interests to protect, whether it be a home or a business. By contacting a local liability protection insurance agent, you can find out more about which policy is right for you and your family and/or business partners.