What You Need to Know about Liability Insurance

August 09, 2017

What You Need to Know about Liability Insurance

What You Need to Know about Liability Insurance - Liability insurance can be said as one of the most useful insurance today. Even though, most of people doesn’t familiar with this insurance, but if you apply for it, you can get more benefit from it. This insurance is very useful for you who offer service as professional. By having this insurance, you can protect yourself against claims that came from your clients or patient.
What You Need to Know about Liability Insurance
What You Need to Know about Liability Insurance
Why You Need It?

There are many reasons. For example, even though you are professional and mastering your skill, you are a human. There are many events, when you will make mistake. Of course, client won’t expect this, and they want perfect service from you. So, when there is a mistake or error when you are giving your service, either it’s because of your fault or other factor, client has right to send claim against you. If you don’t have this insurance, you will need to cover this lost by yourself, which can be really hard. So, it’s like auto insurance that can protect your car.

Some of professional service has high risk, when they make mistake. This is also the reason, why this insurance is needed. The lost cause by it usually can’t be covered by that professional itself.

Type of Coverage and Liability Insurance

There are several coverage you can get from liability insurance, for example, intellectual property, and personal injury, breach of warranty, security and cost of contract. They will basically, cover every aspect in your job. More than that, liability insurance is also like life insurance. With this insurance, you also can protect your property that you left behind. Usually, it happens when there is incident that involves your property in it. However, if you want to get the full coverage like that, you can’t just apply for normal liability insurance. There are many people that choose wrong liability insurance and get no benefit from it. The one that you should choose is the professional liability insurance. This insurance will give you detailed coverage like what your profession needs. 

The coverage type of professional liability insurance is different than the normal version or comprehensive insurance coverage. This insurance uses claims-made basis. With this coverage type, it will be activated when there is accident. But, you also need to remember, that this kind of coverage has limited timeframe. Therefore, if you cancel your insurance, even though you are still in the time limit, you won’t be able to claim it. Your insurance will be disappeared or seen as never happened.

Important Thing

The most important thing that you need to understand is never doing something illegal. For example, you can’t falsify the information that you need to use when you apply for this insurance. If you use wrong or illegal information, you will get more problems in the future. It won’t only be able to protect you, but also you need to face law regarding your mistake. Actually, it’s not only for liability insurance. It is also applicable on car insurance, health insurance and many other insurance products.
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