“Liability insurance” or “third party insurance” is the term used to describe a product that provides the insured party protection against claims arising from injury or damage to a third party or their property.
Any legal expenses and payouts that an insured party is accountable for if they are proven legally liable are covered by liability insurance plans. Liability insurance, unlike other forms of insurance, pays third parties rather than policyholders.
Every type of business need some form of liability insurance. Liability insurance is required if you work as a tradesperson, operate a shop, office, or factory, or organize an event.
The main types of liability insurances that can be purchased are
The purpose of public liability insurance is to protect your company in the event that you are sued by a third party who claims they have suffered a loss as a consequence of negligence.
Employers Liability Insurance protects your company against legal liability in the event of an employee’s accident, illness, disease, or death while on the job.
Product Responsibility Policy offers coverage for legal liability resulting in injury, loss, or damage as a result of items sold or provided, or labor or services performed in the course of your business, up to the amount of coverage specified during any one insurance term.