Liability insurance is carried by both individuals, as well as businesses. The concept between the two types of liability insurance is similar, and yet there are differences. Some small business owners carry both personal and professional liability insurance plans in order to have the most coverage available in their set of circumstances.
Understanding Liability
Liability refers to the responsibility taken by an individual or business in the event that there is an accident or injury that takes place on their property. Liability cases take up the majority of court cases that are not criminally based. When someone, for example, slips and falls on ice, the owner of that property is liable for any injuries occurred by the person that fell. Not having liability insurance can mean financial ruin if the property owner is sued for damages.
Some Examples of Personal Liability
Homeowners have much more to worry about than making house payments. Any injury or accident that takes place on their property is their responsibility. If their dog bites the postal carrier, they could be held liable. If their tree falls on the neighbor’s property during a storm, they could be sued for liability. Potential incidents on personal property are ever increasing. For instance, if a friend is sitting on a porch swing, and it collapses, causing injury, the homeowner could be held liable.
Examples of Professional Liability
Business owners are also responsible for what happens on their property, but much more as well. They are responsible for the safety of their employees. Injuries on the job can mean liability suits for businesses. In addition, if, say, a plumber neglects to fix a pipe correctly, and the water causes damage to a home, the plumber can be sued because he or she is liable for that damage. There is vast potential for any type of business to have liability suits against them so insurance is a must.
The Reach of Liability
Not so much for personal liability, but in the matter of business liability, their can be a lot of indirect responsibility. Services performed and products sold offer an array of different possibilities which can result in law suits. This is true even if the damage was an indirect result of the service or product. An example of this may be if a business owner speaks to a customer of one of their clients. Any damage done as a result of what was said in that conversation could prove the business owner liable.
Liability insurance is no laughing matter. Many of the frivolous lawsuits mentioned in the media are, in fact, liability lawsuits. Individuals and businesses should be well insured against liability to avoid the perils of being sued. Affordable insurance is available, which would offer great protection for a reasonable fee. Going without liability insurance simply is not an option in today’s society. Everyone needs to be sure they are well protected in case of a lawsuit.