Liability insurance is a type of insurance that protects individuals and businesses from legal claims and lawsuits brought by third parties. It provides coverage for the costs associated with defending against a claim and any damages awarded to the claimant. Liability insurance typically covers claims for bodily injury and property damage to third parties, caused by the insured, as well as personal injury claims such as libel or slander. It is commonly purchased by businesses and professionals like Doctors & Chartered Accountants to protect against the risks of lawsuits and financial loss resulting from lawsuits.
Types of Liability Insurance
Directors & officers(D&O) Insurance
Directors and Officers insurance (D&O insurance) policies offer liability coverage for company’s directors , managers, officers etc to protect them from claims which may arise from decisions and actions taken as part of their duties. This policy provides protection for actual or alleged breach of duty, neglect, misstatements, or errors in their managerial capacity.
Commercial General Liability(CGL) Insurance:
Commercial General Liability (CGL) policy provides protection against claims of bodily injury or property damage for which business owners may be liable. The Commercial General Liability insurance covers a wide range of Liability loss exposures faced by most organisations. This policy is a combination of the benefits of both public liability & Product liability insurance.
Professional Indemnity (PI) Insurance:
This policy covers the professionals against any liability falling on them as a result of errors and omissions committed by them whilst rendering professional service. It can cover a wide range of professionals, such as lawyers, accountants, engineers, and consultants. Additionally, it covers business owners as well. In the event of a claim, the insurance company provides financial compensation to the client for their losses, up to the limits of the policy.
