Auto Insurance
Liability Insurance

What is limited Liability insurance?



User Avatar
Wiki User

Limited liability insurance is the most basic insurance policy you can get. It means that the insurance company will only pay to fix the other persons car if you are in a wreck.

User Avatar
Wiki User

Limited liability is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. A shareholder in a limited liability company is not personally liable for any of the debts of the company, other than for the value of his investment in that company. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability).