Understanding Liability Insurance Policies
Liability insurance is designed to protect individuals or businesses from financial loss due to claims of injury or damage caused to others. It helps cover legal costs, medical expenses, and damages awarded in lawsuits, offering a critical safety net in today’s litigious environment. IMSC Insurance Offices, Inc. provides the same in Murray, UT, Riverton, Salt Lake City, Sandy, UT, West Valley City and surrounding areas.
Types of Liability Insurance
There are several types of liability insurance:
General Liability Insurance: Common for businesses, this covers bodily injury, property damage, and personal injury claims.
Professional Liability Insurance (also known as Errors and Omissions): Protects professionals like doctors, lawyers, and consultants from negligence claims.
Product Liability Insurance: Covers businesses against claims related to defective products causing harm.
Personal Liability Insurance: Typically included in homeowners or renters insurance, it protects against claims for injuries or damage caused by you or family members.
Key Features
Coverage Limits: Policies have a per-claim limit and an aggregate limit (maximum payout in a policy term). It’s essential to ensure these limits are adequate for your risk exposure.
Exclusions: Policies don’t cover intentional damage, contractual liability, or criminal acts. Always read exclusions carefully.
Defense Costs: Most policies include legal defense costs, which can be substantial even if the claim is groundless.
Occurrence vs. Claims-Made: An occurrence policy covers incidents during the policy period, regardless of when the claim is filed. A claims-made policy only covers claims filed while the policy is active.
Why It Matters
Liability insurance helps protect assets and maintain financial stability in the face of legal action. Whether you’re a homeowner, business owner, or service provider, the right policy can safeguard your future from unpredictable events.
Always consult an insurance professional to choose coverage tailored to your needs and understand policy terms clearly before purchasing.
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