Definition of Liability insurance:
Policy that covers civil liabilities to third parties, arising from bodily injury, property damage, or other wrongs due to the action or inaction of the insured. It covers only civil liabilities and not criminal liabilities.
Liability insurance is critical for those who may be held liable for injuries to others, or in the event that the insured party damages someone else's property and is considered to be at fault. Liability insurance policies are taken out by anyone who owns a business, drives a car, practices medicine or law—basically anyone who can be sued for damages and/or injuries.
Liability insurance provides the insured party with protection against claims resulting from injuries and damage to people or property. Liability insurance policies cover both legal costs and any payouts for which the insured party would be responsible if found legally liable. Intentional damage and contractual liabilities are generally not covered in these types of policies.
How to use Liability insurance in a sentence?
- Provisions not covered include Intentional damage, contractual liabilities, and criminal prosecution.
- Liability insurance covers legal costs and payouts for which the insured party would be found liable.
- When running a business that sees a lot of foot traffic, it is worth considering liability insurance because youd be surprised how aloof people can be when wondering through a store.
- By law any person operating a motor vehicle on the public roads or highways must carry liability insurance on their vehicle.
- If you wanna drive a car, you have to make sure that you have liability insurance , so you dont have to pay a lot if an accident occurs.
- Liability insurance provides protection against claims resulting from injuries and damage to people and/or property.
Meaning of Liability insurance & Liability insurance Definition