Life is complicated, insurance doesn't have to be.
Read time: 2 minutes
Whether you need it for your business, car, or house,
liability coverage is a crucial piece of your insurance policies. It
can be the difference between a catastrophic financial loss and
being able to handle the situation confidently.
1. What is liability insurance?
Liability insurance is a term people often use when they’re
actually referring to a portion of an existing insurance policy.
Broadly speaking, liability coverage provides
financial protection if somebody makes a claim against you because
of an injury, property damage or other covered loss.
Essentially, if you are deemed legally obligated to pay
damages, the liability coverage within the applicable insurance
policy may help you pay for those damages.
2. What does liability insurance cover?
will depend on what type of insurance policy you’re looking at for
So, let’s dive in to the common policies that typically
include liability coverage and what it covers.
Liability coverage within an auto
insurance policy can pay for covered damages resulting from an
auto accident, like:
insurance policies have a wide range of options when it comes to
liability coverage because of the risks that come with owning a
business. Generally, when you’re looking at what liability insurance
covers for a business, it may include:
Read more: Quick
& Easy Overview of Liability Insurance for Business
The liability coverage within a home
insurance policy, renters
insurance policy or condo
insurance policy may include:
3. Why do I need liability insurance?
You can’t anticipate what may transpire after a covered loss,
which is already a stressful situation. Besides providing financial
protection, it may also be required by your state or, if you own a
business, it may be required by the industry you’re working in.
Read more: What
are Insurance Premiums, Insurance Deductibles and Policy Limits? Our
4. What coverage limit should I have on liability?
Almost as important as actually having liability coverage is
making sure you select an adequate limit. This will again depend on
your situation and what insurance policy you’re looking to add this
coverage to. Talking to a local, independent insurance agent is a
great way to get advice about what limit may protect you best.
Liability insurance is a crucial part of several insurance
policies. Talk to your local, independent
insurance agent today to make sure you’re adequately covered.
Copyright Auto-Owners Insurance Company © 2023. All Rights Reserved.
* Products referenced may not be approved/available in
all states. Limitations and conditions may apply. Premium
will be based on benefits chosen and policy rates available
at time of application.
Disclaimer: This article is not expert
advice. The analysis of coverage is in general
terms and is superseded in all respects by the Insuring
Agreements, Endorsements, Exclusions, Terms and Conditions of
the Policy. Some of the coverage mentioned in this material may
not be applicable in all states or may have to be modified to
conform to applicable state law. Some coverages may have been
eliminated or modified since the publishing of this
material. Discounts may not be available in all states.
Limitations and conditions may apply. Premiums will be based on
benefits chosen. Please check with your local Independent
Auto-Owners Insurance Agent for details.