We live in an increasingly litigious
society. People are suing for incidents
that used to be settled with a simple apology.
And, the amount they are asking in damages continues to escalate. Getting sued for a significant amount is a real
possibility in modern society; the risk has increased.
Fortunately, an individual can transfer a large
portion of that risk to an insurance company where it can be pooled with other
individuals who face similar risk. The
insurance that offers this transfer opportunity is liability coverage. There is liability coverage on an auto
policy, a homeowner’s policy and a policy covering a recreational vehicle. Today, many individuals and families also
purchase a Personal Umbrella liability policy, which provides excess limits.
What does it cover?
Liability insurance is designed to respond when
you are legally liable for someone’s injuries or damage to their property. For example:
·
Premises Liability: A neighbor slips and falls on the ice on your sidewalk; you are
liable for their damages
·
Motor or Recreation Vehicle Liability: Your
teenaged son loses control of your boat and collides with another; you are
liable for the damages
·
Liability for Personal Activities:
Your over-active, eight-year old
propels a loaded shopping cart down the grocery aisle, hitting a little old
lady and sending her flying; you are liable for the damages
What is paid?
A liability policy will pay “damages” to the
injured party for a covered loss due to bodily injury or property damage. In addition, it pays for all attorney fees
and defense costs, claim expenses, and the cost of investigation. Liability coverage is designed to pay the
financial costs of a covered claim
Peace of Mind Coverage
Liability insurance provides peace of mind in
today’s litigious society. Purchasing
the appropriate types of liability coverage in adequate amounts allows you to
transfer the risk of being sued to an insurance company. Then you can focus on those things that give
your life meaning
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