What is Liability Insurance?
When you purchase insurance for your car, home, or business, there are many options to consider. The various types of insurance can protect you in the event of an accident or lawsuit.
One type of insurance to consider is liability insurance. Liability insurance is a type of coverage that protects you in situations where you are at fault for an accident and it causes injuries or property damage to another person. A good way of remembering this is that it protects you if you are liable.
What makes liability insurance different from other types of insurance is that it pays third parties, not you. The coverage pays out in accidental situations only. Intentional injuries or damages are not covered.
In many cases, liability coverage is required. This is true for auto insurance in Michigan, for example. Bodily injury liability insurance covers claims made against you if you are at fault in an auto accident and cause injuries or damage to a third party. Auto insurance policies are required to provide bodily injury liability insurance coverage of at least $250,000 per person and up to $500,000 per accident.
Types of Liability Coverage
Above is an example of liability coverage for auto insurance. Liability coverage can be helpful for other types of insurance as well.
For example, Homeowners liability coverage provides financial protection if you’re found liable when a guest is injured at your home. A common situation would be a guest slipping and falling next to your pool or falling down a flight of stairs. If you are found liable for their injuries, liability coverage may help pay for their medical or legal expenses.
Even if you rent a home, liability coverage for renters insurance can be helpful. If you have guests over often, they may get into an accident at your rented place.
Renters liability coverage may help pay for the guest’s medical bills.
Liability coverage can help with boat, motorcycle, and RV accidents as well. You can use this coverage to pay for expenses caused by an accident that you were liable for. By getting this coverage, you can avoid paying for anything out of pocket.
If you own a business, you may want to consider liability coverage. It can help pay for things like legal expenses or medical bills related to an accident that happens at your business. Certain types of liability coverage, such as professional liability insurance, can pay for damages caused by data breaches and errors and omissions.
Contact Our Michigan Liability Insurance Agency Today
There are many types of insurance, and they can all be confusing. Have questions about liability insurance and what it covers? We can help!
A Michigan insurance agent from Hartman Insurance Agency can provide you with superior customer service and financial security for you and your family. Schedule a consultation today by calling (734) 999-4190 or filling out the online form.