Many types of liability policies exist to protect individuals, as well as businesses and other organizations, against the possibility of causing damage to other people’s property, bodily injury, or death. And these plans essentially fall into two general types: personal and business.
Common types of personal liability coverages include home and vehicle coverage. When homeowners and property owners purchase policies, they have some measure of protection against potential lawsuits arising from damage, injury or death due to the use of the insured homes, other structures and parcels. Most homeowners insurance plans come with some measure of lawsuit protection, but an umbrella insurance policy will provide an even higher level of coverage at relatively affordable rates.
When it comes to vehicles, liability plans are required by law in all states to legally drive on public roads. These policies are divided into three segments. The former pays the cost of medical treatment for an individual’s bodily injuries and generally ranges from a mandatory minimum amount of between $10,000 and $50,000, depending on the law of the state in which the vehicle is licensed. The next segment pays medical costs to treat bodily injuries to more than one person and is typically twice the mandatory amount for injuries to one person resulting from the use of the insured vehicle.
The final part of vehicle liability pays for damage to other people’s vehicles or property, such as when involved in a collision or vehicle rollover that causes the driver to lose control and possibly damage a structure or other item. Such coverage could be as low as $5,000, depending on some state laws. But that can leave a car owner vulnerable to a lawsuit if damages exceed that amount. In which case, a general plan could make up the difference.
For business enterprises, liability protection is a great necessity and is acquired by every sensible businessman. Such policies can range from workers’ compensation insurance, which is required by law in all states except Texas, where employers can opt out of such plans. Workers’ compensation pays for medical treatment costs as well as wages for employees injured while on the job in exchange for not engaging in costly legal battles that could tie up the courts and leave one party suffering a potentially serious loss.
Other types of commercial liability protect those who do business with the insured and may include coverage for damage, injury, or death arising from the use of a product sold or services provided. Other types may insure against injuries that occur on covered property or may protect assets that a company cares for on a fiduciary basis.
No matter what type of coverage an individual or business company may need, having at least some measure of protection is a smart move and, in many cases, legally mandated by state law.
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