The Basic Understanding of Liability Insurance
The Basic Understanding of Liability Insurance
The Basic Understanding of Liability Insurance - Insurance is the way you protect yourself, your properties
and others financially when something happens unexpectedly. In our life, there
are many things that can be happened unexpectedly such as car accident, working
accident, natural disaster and other unexpected situation. In those situations,
everybody can lose properties or even life. You will never know when it will be
happened, but with insurance, whether you are ready or not, it will support you
financially. In those unexpected situations, it is possible that you are the
one who are responsible to the damage and loss as well as the medical bill.
When you don’t have any insurance, the cost of covering the others’ damage
properties and injuries will quite frustrating. You can protect yourself
financially from that kind of situation by applying liability insurance. We are
going to discuss briefly about what liability insurance is and how it can help
protect you.
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The Basic Understanding of Liability Insurance |
Liability Insurance
Liability insurance is one type of insurance that will
financially protect you from being responsible in others’ properties damage,
loss and injury. To purchase liability insurance, you need to pay a monthly or
yearly premium. When something happens unexpectedly, the insurance will
exchange the premium that you have paid with their service to cover the bills.
There are some procedures that you need to follow before you can claim the bill
to the insurer.
The simplest example is when you get involved in an accident
and you are the one who cause the accident. The accident can damage the others’
properties, such as vehicles, public or private properties, and other
properties. Besides the damage, it is possible that somebody get hurt or
injured. Therefore, you need to be responsible with the damages and the injury.
You need to pay the bills. By having liability insurance, the insurance can
help you cover the bills. From that example, you can see the importance of
liability insurance. You don’t have to worry about bills that come to you for
being responsible. Just image that you don’t get protected with the insurance,
you will cover the bills by yourself. Whether or not you have enough money to
cover the bill, it will always be harder.
The Usage
There are some other usages of liability insurance that you
need to know before purchasing this type of insurance. This type of insurance
is used many businessman to protect their business from risk in working place.
When something bad happens during the business operation such as injury, this
insurance can cover the medical bill. Commonly it is called Employer’s
Liability and Worker's Compensation. Liability insurance is also used a lot buy
product manufacture. This type of insurance will protect the manufacturer
financially, when the product that is made by the manufacture causes damages or
injuries to the one who purchase the product. It is commonly called Product
Liability Insurance. Medical practitioners also use this insurance to protect
themselves when the patients get injured caused by their medical practice. When
liability insurance covers something that caused by your mistake, it can be
called Indemnity Insurance.