Liability insurance

You may have heard a lot about liability insurance, but what exactly it is? And, more importantly, why is it so vital to have, particularly in certain professions?

Liability insurance, in short, gives you protection from any risks arising from possible lawsuits or other kinds of claims made against you. This kind of insurance is typically included in most general insurance policies.

There are some smaller print details to this kind of insurance however. This kind of insurance that covers liability means that the insurer has a duty to defend. This comes about if a claim is made against the person who is insured. The insurer will only defend you, however, if the claim comes under the specified insurance policy that you have with the insurer. If the claim is out of the remit that their insurance policy offers, then you have to defend yourself, and pay to do so out of your own pocket.

There are different kinds of insurance covering liability. For example, employers insurance. In the UK it is compulsory to have this form of insurance, and covers you as (as an employer) if your employee is injured in the course of his or her work. Despite being a legal requirement in the UK, there are certain exceptions. For example, if you are running a family business then it is unlikely that you will be required to get this kind of insurance.

Liability insurance is therefore  a strong thing to consider, particularly if you run your own business. Always check the small print of your insurance policy to make sure that you have good coverage and to understand the rules and regulations that go along with the policy.