Years ago, Liability insurance protection was not offered by insurance companies. That meant that if your business was found liable for an accident, you had to pay damages out of your own pocket. How much is the livelihood or even the entire life of another person worth? According to law only, it could be worth thousands—even millions of dollars!
Liability insurance is available today and protects both individuals and businesses in a world of exceptional risks. There's no way to avoid risks altogether, and certainly no way to guarantee an accident won't happen on your business property. But with Liability insurance, you can invest in your own protection. |
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Why You Might Need Insurance
After an accident occurs, if a third party feels a business (or even another individual) was in error somehow, they can make a claim to their insurance company or they take their case to a civil court. Usually Liability insurance trials don't go to court and “fair” settlements are paid to the injured party instead, at the advice of attorneys. This means—yes, you guessed it—more money straight out of your pocket.
There are different levels of liability coverage—such as full liability as well as personal, professional and product liability. Each of these plans deals with a specific factor in liability coverage, and protects a person from only specific kinds of litigation. A full coverage liability plan would be the most comprehensive and safe to a business owner.
But Do You Need The Extra Bills?
If you are an individual then the only Liability insurance you will probably deal with is automobile Liability insurance and personal liability—although the latter is not prevalent. Many people never stop to think about the question, “What if something happened in everyday life in which I was personally responsible for someone's injury or even death?” You can go without Liability insurance. But if you do so, you risk all of your assets, in the event that a civil trial ever becomes of it.
If you have a business then it is even more important to protect yourself with Liability insurance. Depending on the type of business you own, you may have a higher risk factor than the norm and going without any liability protection, could be nothing less than a gamble
