Insurance Term of the Day: Liability

Have you ever had someone accidentally damage your property? If you’ve been in a car accident that wasn’t your fault, you have. As humans, we all make mistakes. We must have a little mercy on each other because we’ve all been there; no one is perfect.

Our assets are valuable to us. When we invest in something, we want that item to last as long as possible. Sometimes, we have no control over the accidents that cause damage to our valuables. Though we can be forgiving, we still want justice. No one wants to pay for something that wasn’t their fault.

It goes both ways. We could accidentally cause damage to another person’s assets. We should all be held liable for our actions that affect another life. When our mistakes/accidents result in damage to another’s property, or injuries to another person, liability insurance provides the financial protection we need.

This is essentially why we have liability insurance to cover our backs.

In general, liability coverage does not include intentional damage to another’s property. Liability is reserved for unintentional accidents.

There are multiple kinds of liability coverage. All of us need liability coverage for our own mistakes. For commercial insurance, businesses and even medical practitioners are held responsible for their products and services.

• Auto insurance liability: This is the kind of liability that affects our personal lives the most. If we accidentally cause an accident, liability helps cover the damages to the other party’s vehicle as well as any injuries sustained. Think what would happen if insurance didn’t have our backs–we’d have to pay out-of-pocket for the damage we caused!

• Homeowners insurance liability: If someone gets hurt in our home, we could easily be held liable for their injuries. Maybe you didn’t warn your friend that you had just mopped the floor, and she slips and hurts her back. Liability coverage helps you in these circumstances.

• Product liability: When businesses sell products, they are held responsible for any aftermath of their products. For example, if a business sold a new lotion that caused a serious rash for the consumer, insurance is there to cover their financial liability for the claim.

• Umbrella liability: An umbrella policy is there to provide coverage when policy limits are met for a different insurance policy. For example, if there is a very serious car accident causing injuries to multiple people, medical expenses could exceed the policy limits. Umbrella policies provide additional, necessary coverage for the more serious losses.

This is just to name a few. There are more types of liability that insurance covers. Speak with your independent insurance agent about your personal needs to explore your liability options.

By: KayLynn P.