If you cause an accident on your property or someone is wounded on your land, you may be held legally responsible for the resulting costs, such as medical or legal bills. Liability coverage can shield you against these types of costs, which is why it’s important to know the liability coverage provided by your insurance policies and the restrictions that apply. Having the necessary precautions in place can help protect you if something unexpected happens.
Personal liability coverage is a common feature in homeowners’, renters’, and condo insurance policies. On the other hand, other forms of insurance plans may provide liability coverage.
Different types of liability coverage are offered in different types of insurance policies:
- Auto Liability Coverage Liability insurance is a standard policy in most states and is included in most auto insurance policies. In two ways, auto liability insurance can help give protection. Auto bodily injury liability coverage may help pay for medical fees if you cause an accident that injures another individual. If you damage another person’s property with your car, your auto property damage liability policy can help pay for the repairs.
- Homeowners Liability Coverage: If you’re found accountable after a guest is wounded at your house, homeowners liability insurance protects you financially. Let’s say a visitor trips and falls on your pool deck or down a flight of stairs. Liability coverage may help pay for their medical and legal costs if you’re proven to be at fault for their injuries. This coverage is usually included in a regular home insurance policy, but there are limits (the most an insurer will pay toward a covered claim) that must be met. Renters’
- Liability Coverage: Nobody expects a guest to be hurt, yet accidents do happen. Renters’ liability coverage may assist in paying for a guest’s medical claims if you’re proven legally responsible for an accident that occurred at your rented home or apartment. Personal liability coverage in a renter’s policy may also help pay for the cost of repairing a window if your youngster throws a ball through a neighbour’s window. If you have an accident with your boat, liability coverage in a boat insurance policy protects you from having to pay out of pocket if you’re proven to be at fault for another person’s injuries or property damage.
- Motorcycle Liability Coverage: On a standard motorcycle insurance policy, liability coverage comes in two types. If you’re held liable for someone else’s medical expenses or income loss as a result of a motorcycle accident you caused, bodily injury liability coverage can help. If you’re found at fault for an accident involving your motorcycle, property damage liability coverage protects you from having to pay out of pocket for repairs or replacement of someone else’s car or property.
- Landlord Liability Coverage: Although landlords may not reside in the rental properties they own, they do bear some responsibilities. Consider the case of a tenant who trips over a broken step. You might be held financially liable for medical expenses incurred as a result of an injury if you were found negligent in maintaining the property or failed to warn the tenant of potential risk. Liability coverage is generally included in landlord insurance policies, which can help cover costs associated with these types of circumstances.
- Business Liability Coverage: Because small business owners are vulnerable to events such as data breaches and business-related accidents, a variety of business liability coverages are available. A normal business insurance policy may already include some liability coverage, such as commercial general liability. However, other types of company liability insurance, such as data breach liability insurance, employment practices liability insurance, or errors and omissions insurance, may be worth considering as well. Legal fees or medical bills incurred as a result of a covered accident at your place of business may be covered by business liability insurance.