Liability insurance is a type of coverage designed to protect policyholders from legal and financial consequences resulting from third-party claims. These claims may arise from bodily injury or property damage for which the policyholder is deemed responsible. The primary purpose of liability insurance is to cover the costs associated with legal defense, settlements, ad judgments that may arise from such claims.

Liability insurance policies are designed to safeguard policyholders from potential lawsuits and the costs associated with legal defense and settlement, which can be financially devistating.

Types

• General Liability Insurance: Provides coverage for bodily injury, property damage, and personal injury (such as slander or libel) that may occur on your business premises or as a result of your business operations. 
   
• Professional Liability Insurance (Errors and Omissions Insurance): Protects professionals (such as doctors, lawyers, consultants, and accountants) against claims of negligence or inadequate work that result in financial loss for the client.
   
• Product Liability Insurance: Covers businesses that manufacture, distribute, or sell products in case a product causes injury or harm to a user.
   
• Employers' Liability Insurance: Often part of workers' compensation insurance, employers' liability insurance covers employers against claims by employees who have suffered work-related injuries or illnesses that are not covered by workers' compensation.
   
• Directors and Officers (D&O) Liability Insurance: Protects directors and officers of a company from personal losses in case they are sued for alleged wrongful acts while managing the company.
   
• Cyber Liability Insurance: Protects businesses from the financial losses and liabilities associated with data breaches and cyberattacks.
   
• Umbrella/Excess Liability Insurance: Provides additional liability coverage beyond the limits of other liability policies a business may have.

Who needs liability insurance

Liability insurance is a crucial form of protection for individuals and businesses alike. Anyone who faces potential legal liabilities, such as professionals, small business owners, landlords, and contractors, should consider obtaining liability insurance to safeguard their assets and mitigate financial risks associated with lawsuits or damages caused to others.