All About Liability Insurance

Although the term "Liability Insurance" appears around us everyday, a few people want to spend their time exploring the basic definition of Liability Insurance.

Understanding the definition of "Liability Insurance"

Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.

Liability insurance can protect an individual or business from risky situations such as car crash, injury...

Investopedia explains "Liability Insurance"

If you are looking for another definition of Liability Insurance, you can consider the explanation from Investopedia, as follows:  

Liability insurance is very important for those who may be held legally liable for the injuries of others, especially medical practitioners and business owners. A product manufacturer may purchase product liability insurance to cover them if a product is faulty and causes damage to the purchasers or any other third party. Business owners may purchase liability insurance that covers them if an employee is injured during business operations.