Liability insurance

What Is Liability Insurance?

Liability insurance means insurance that provides an insured party with protection from injuries and damage to other people or property. Liability insurance policies overcome legal costs and payout. Unlike other types of insurance, liability insurance policies pay third parties, not policyholders.

How Liability Insurance Works

Liability insurance is also known as third-party insurance. Liability insurance does not cover any type of intentional or criminal acts. Policies can be taken out by anyone who owns a business, drives a car, practices medicine or anyone who can be punished for damages. Policies can protect both the insured and third parties.

Types of Liability Insurance


Employer’s liability

Employers must avail this which protects the business against liabilities occurring from injuries or n case of death of an employee.


Product liability 

This insurance is for businesses that make products for sale. Product liability insurance protects against damage caused to the products.


Indemnity insurance 

It protects a business against claims due to financial harm resulting from mistakes or failure to perform.


Director and officer liability

It covers a company’s board of directors if the company should be sued. Some companies provide additional protection to their executive team.


Umbrella liability 

These policies are personal liability policies which are to protect against catastrophic losses.


Commercial liability 

This insurance is a standard commercial general liability policy is also called comprehensive general liability insurance. It provides insurance coverage for any injury to employees and the public, and property damage caused by an employee, etc.


Comprehensive general liability

These policies are for any small or large business, partnership or joint venture businesses, a corporation or association, an organization, etc. This insurance covers bodily injury, property damage, personal and advertising injury, medical payments, and premises and operations liability and many more.