Liability insurance is a part of insurance that protects the policy buyer from all type of legal actions and claims that can be sued against him. These liabilities can be rather challenge a person physically in the court or may can cause you heavy financial loss, if in case you haven’t bought a liability insurance. In most of the cases the liability insurance money is not paid to the insured, it is paid to the third party who has been suffered from loss and the insurance carrier take the responsibility to save the person against the lawsuits or claimed. In most of the countries it is compulsory to buy especially for those individuals who are providing some type of services like driver, it can be a product maker or it can be a contractor. Generally liability is categorized as follow:
Professional liability insurance
This is also named as some time error and omission policy as this type of insurance is not a part f general liability. So you need to take it individually. It will defend you against any type of claim which occurred due to your advice to the customer if you are a part of customer service business. Or if you are a lawyer or something and your advice will harm the third party in some legal issue then this type of liability insurance will provide coverage for it.
Public liability insurance
This type of insurance is important for the safeguard of all those persons who are visiting your company of office frequently. This is important for those who are having the businesses where a lot people come to visit like a shopping mall, a cinema a pub, a hotel, sporting venues or resort. The type of coverage may vary according to the risk of incidents that occur for example the areas where there is a consumption of alcohol is more often or at a high risk and even the policy writer demand for a high deductible to handle the risk factor. But you should cover the necessary factor to avoid risk on your place.
Employer’s liability insurance
This type of insurance liability provide protection to all those employees who are working with you. It is compulsory in America as it cover each and every type of damage that is caused to your employer when he is at work .Depending on the coverage he has taken it provide money for medical injuries and sometime wages as well.
Product liability insurance
This type of liability coverage provide compensation for those who get affected by any faulty product manufactured by your company .The product can be some eatable, can be a medicine or even can be a design given by you to to your customer so if it give any type of damage to the other one then the product liability insurance will compensate it.
General Liability insurance
It generically cover all those above mentioned liabilities as you may need some of them and may not require the other ones so when you are taking general liability it cover bodily injuries of the third party any type of other damage caused by you to the third party the other above mention type of general liabilities depend on the type and scoop of your business you can set them accordingly. But if you have a general liability the company will pay for all legal proceedings and will own against all the covered lawsuits and claims.