Liability insurance is an important type of insurance product that protects your assets in the event that you are held liable for an accident or negligence. There are different types of liability insurance that you can purchase to ensure that you are protected from various situations. Check out a few types of liability insurance that you may want to buy.
1. Umbrella Insurance
Umbrella insurance is a type of general purpose liability insurance. If someone sues you for an amount that exceeds the coverage provided by your other insurance policies, the umbrella insurance kicks in so that you do not have to drain your assets to pay for a settlement. For example, if your car insurance will only pay out $300,000 and you are sued for $600,000, the umbrella insurance will cover the remaining $300,000.
Some insurance policies prohibit certain types of claims. Umbrella insurance will pay out on many of the claims excluded by other types of policies, such as libel lawsuits.
2. Vehicle Liability Insurance
Most states require anyone who operates a vehicle to purchase vehicle liability insurance. Vehicle liability insurance provides coverage in the event that your driving causes bodily harm, property damage, or death of another individual.
You have multiple options when it comes to the limits of your vehicle liability insurance. Check with your insurance agent to determine what limits are required in your state. At minimum, you need to purchase enough liability insurance to satisfy your state's laws. You may want to select limits above the minimum to ensure you are protected in the event that you cause an accident.
3. General Liability Insurance
If you own or operate a business, it is important to have purchase a general liability insurance policy specifically for your business. The type of insurance protects your business if someone is injured at your place of business or if your business causes harm to others during its normal operations. Instead of your business having to liquidate in order to pay a lawsuit or cover someone's medical expenses, you can file a claim against your insurance policy.
Depending on the type of business that you run, you may want to purchase additional riders or policies to protect your business in various circumstances. For example, if you use your automobile for business-related errands, you should consider purchasing a commercial liability policy for automobiles.
A business owner's liability insurance policy lets you increase the limits of your general liability insurance policy so that you do not have to drain your personal assets to pay for a business-related lawsuit. Instead, this policy will pay for potential damages that you cause as a business owner.
Talk to an insurance agent about the different types of liability coverage and which ones would be most beneficial to you.
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