Liability Insurance
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Liability insurance is a type of commercial insurance which aims to cover financial losses arising from any physical injury or damage of property which is caused by the insurer or the employees of the company to others. Such insurance policies apply when the accidents take place at the premises of the insurer or at the customer’s location. Insurance claims are not provided for the errors that may occur at the time of delivery of any professional service to the customers.
Liability insurance is a type of commercial insurance which aims to cover financial losses arising from any physical injury or damage of property which is caused by the insurer or the employees of the company to others. Such insurance policies apply when the accidents take place at the premises of the insurer or at the customer’s location. Insurance claims are not provided for the errors that may occur at the time of delivery of any professional service to the customers.
Liability insurance is also provided in cases of theft or any damage to the hardware or software of computers in the concerned company. Coverage is provided in case of destruction of other properties and office furniture as well. There is of course, a limit imposed on the coverage that is provided.
Liability Insurance: Extent of Coverage
Experts opine that liability insurance should be to the extent of two to three million dollars. The price that the person or company applying for the liability insurance policy pays is a function of the size of business and the risks that are tagged with it.
In the following section we list the types of insurance that are provided by liability insurance companies.
Liability Insurance: Options
Personal and advertising injury: Such liability insurance coverage is provided in case of any offensive activity done by the insurer or his/her employees. Offenses can be slander, libel, dispraise or violation of copyright laws.
Employment practices liability: This type of liability insurance covers defense costs when the insurer or the employees are caught up in law suits.
Medical expenses: If anyone is injured on the premises of the insurer then such medical expenses are borne by the general insurance company on behalf of the insurer.
Tenants’ liability: If there is damage caused due to fire or other covered reasons in the premises rented by the insurer; then insurance coverage is provided for such losses by the liability insurance companies. In this way, the business of the insurer is shielded against financial claims arising out of such loss.
Business insurance like this can often be expensive, especially for smaller niche trades. However professional indemnity insurance from Markel, a specialist in business insurance, is extremely competitive and one of the lowest cover prices available. So you shouldn’t let price be an obstacle in securing professional insurance for your business.
