Liability Insurance Terms and Definitions

What is the definition for Liability Insurance: The simplest definition of liability insurance is the insurance coverage that is used to defend against claims claiming that negligence or an inadvertent actions caused bodily harm or property damages.

Organizations and individuals can make mistakes, for which they can be held accountable if and when the actions are ruled to be responsible to damage to the body or property of others. Insurance policies provide insurance. Liability insurance pays in the event that an insured person is legal responsible for the act of negligence. In certain circumstances the insurance will provide protection in the event that the insured is morally obliged’ to a person which is hurt due to the negligent acts that the insured Church Liability Insurance.

Organizations and individuals vary greatly in their business and social behavior, as does the insurance coverage necessary to safeguard them. For every category of individualsand organizations, there are different types of insurance that protect. Different individuals/organizations require different typesor amounts of liability insurance.

Classification of Liability

Personal Liability vs Commercial Liability Insurance for personal liability provides protection for individuals, whereas commercial liability covers an entity that is a business. A sedan with four doors requires an auto liability insurance policy for personal use. If the vehicle is used to deliver goods, it could require a commercial auto insurance policy.

Individual Liability Protection normally comes in personal policies , such as Private Auto Policies (PAPs), Homeowners Insurance Policies Boat policies personal umbrellas, and boat policies. These insurance policies pay for the any damages caused by the insured in the case of injured person’s bodily injury or personal injuries, property damage and legal defense associated to claims made against the insured.

Commercial and Business Liability Protection: It is designed to protect individuals and businesses for their business practices.

Premises liability is when someone not the insured’s employees or the insured’s is suing the business for damages caused by an injury suffered on the premises of the business. The victim must suffer an injury in your premises and must file a claim for the injuries they sustained.

Product Liability covers the protection of liability for businesses that have completed items or products. Similar protection is offered under the terms ‘completed operations which includes the operations of numerous contractors in the event that they cause damage to others as a result of the service they provide. Professional service companies like lawyers, doctors and real estate brokers and insurance brokers have professional liability insurance policies.

Professional Liability. It provides protection to a variety of categories of businesses and individuals in the event of bodily injury or damages their advice or service could cause to other people. Examples include medical malpractice insurance for medical personnel and doctors and errors and omissions insurance for real estate agents and insurance agents, etc.

Employer’s Liability covers employees while they are employed. Employers must be negligent or at fault in order for the insurance to be effective. In the instance in the case of Workers Compensation, fault and negligence need not be proved in order for the employees to be able to claim any injury resulting from work.

Directors and Officers insurance offers insurance against lawsuits brought attributing the directors of the company by the business’s owners. Garage Liability can be used in cases when a company deals using vehicles that are owned by third parties. This coverage protects against the possibility of being sued due to the use of vehicles that belong to the company or vehicles owned by other people (clients.) If an individual or business with or has access to vehicles belonging to others the coverage is known as “Garage Keeper Liability” is required. Garage Keeper Liability provides comprehensive and collision protection for vehicles that are not owned by the company, even though the vehicle is in the possession of the company. Valet and auto service stations parking companies, towing services as well as car wash facilities are all examples of businesses that require garage liability and liability for garage keepers. security. Garage keeper liability may be written as the Direct Basis, or in excess. In the event of Direct Basis the policy will be able to pay for vehicle damages of the customers of the insured regardless of who was at fault. In the event of Excess the policy will be able to pay for damage to vehicles of customers of the insured only in the event that the insured is negligent.

Liquor Liability offers protection to establishments that sell alcohol (Packaged liquor or taverns), producers of alcohol) against damages or losses caused by customers of the establishment being drunk and causing injury to them or other patrons.

Inland Marine/ Cargo Liability protects businesses involved in the transportation of goods and property of other people. It covers the damages to the property that is hauled in event that the insured is held responsible for damages.

Time Factors for Liability Insurance Insurance Polices

Certain commercial insurance liability contracts are written according to Claim Basis. The policy is in effect at the time of any claim is made against the insured will be paid for any losses regardless of the date they were made within the last. The majority of professional insurance policies for liability are written on a the Claim Made basis. Commercial liability policies are typically written on an Occurrence Basis which means that although the insurance might expire, provided that there was a valid policy in effect when injuries to the body or damages to property was sustained, an action can be filed against the policy.

Limits of Liability

CSL as well as Combined Single Limit policies allow insurance companies to mix bodily injury liability as well as the liability for property damages into one limit. The insurer would be able to pay the limit of the third party’s claim, regardless whether the claim is for property damage or bodily injuries. With Split Limit policies it is possible to break down limits into like limits on bodily injury per person, limits on bodily harm per incident as well as loss of property per accident.