What Does Liability Insurance Cover?

by | Auto Insurance, Commercial Property Insurance, Home Insurance

Among the many questions we are often asked by our clients is, “What does liability insurance cover?” Whether they’re wondering about liability insurance for their home, their car, or their business, we’ve got the answers!

 

1. Auto Liability Insurance

 

There are two types of auto liability insurance: bodily injury liability and property damage liability.

Bodily injury protection can cover an injured person’s medical expenses if you’re at fault in an accident, lost wages if they can’t work due to their injury, and legal fees you might face from the accident.

The other component of an auto insurance liability plan is property damage protection. If you’re responsible for an auto accident with someone’s vehicle or their property, this can help pay to repair any damage.

 

2. Liability Insurance for the Home

 

Here are just a few examples where a homeowners liability insurance policy can help protect you:

  • Your friend is in town for the weekend and they trip on a broken step in your home. You could be responsible for paying for their medical bills and lost wages, which is where liability insurance can help.
  • Your child is tossing a ball outside and it breaks a neighbor’s window. With liability insurance, you’ll have the coverage to pay for repairing the broken window.
  • If Fido bites someone in your home or while you’re out on a walk with them, you’ll likely be legally responsible for the bitten person’s medical bills, and home insurance liability applies in this situation, too!

 

3. Commercial Liability Insurance

 

Commercial general liability insurance is a broad form of coverage meant to protect business owners from the costs associated with people injured or property damaged during the course of their business operations. For example, a customer slipping on the floor of your shop. Commercial liability can not only cover their medical bills, but it can also offset the cost of legal fees if you’re sued. Commercial liability insurance can also help cover the costs that come with identity theft, forgery, errors and omission claims, and a whole lot more!