When it comes to property and casualty insurance, having liability insurance is the most essential piece. Here’s everything you need to know about liability insurance from our insurance experts.
What does Liability cover?
Liability insurance covers possible damage that you cause to someone’s person or property. If you’re in a car accident and damage both your car and another party’s car, your liability insurance would only cover the other party’s car and you would be responsible for covering the cost of repairs on your own vehicle. This is why liability insurance is essential - it protects you from paying out of pocket for damages you caused.
Types of Liability Insurance
Liability insurance isn’t just limited to vehicles, it applies to multiple different areas including commercial liability for businesses, home, and rental, but overall it functions the same. Meaning if you’re responsible for damage to another party’s person or property in your home, your liability insurance coverage will kick in. Similarly, if a business is found at fault for an accident, their commercial liability covers the damages incurred.
Do I need Liability Insurance?
In most states, it is illegal to drive without liability coverage, but outside of that, without liability insurance, you’re risking paying out of pocket for any accidents you might cause which could end up being very expensive. As they say, it’s better to be safe than sorry and liability insurance is the best way to do just that.
If you have questions about liability insurance or are interested in learning more, contact us to get in touch with our insurance experts.