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Broadly, a liability insurance policy provides a source of recovery for a third party who or which is injured or sustains monetary damages due to the negligent act or omission of the insured. The corollary is that a liability inurance policy provides protection to the insured for the risk of financial loss to a third party as a result of the insured's negligence. Assuming that tje damages sustained by the third-party results from a covered cause of loss, the policy will answer for the damages which would otherwise payable by the insured, up to the coverage limit. That is, there may be some amount that the insurer will not pay if that amount exceeds the policy limits.
Another very important benefit of a liability policy is that if the insured is sued for an occurrence that is covered by the policy, the insurer will hire a lawyer, at its own expense, to defend the insured, and will pay costs related to that defense. In some forms of liability policies, such as professional liability policies (those issued to physicians, lawyers and some other categories of professionals), the amount paid by the insurer toward the conduct of the defense reduces the amount available for the indemnity payment.
What else can I help you with?
Explain homeowners personal liability?
A personal liability, or umbrella, policy pays liability limits above those you can get on your homeowners or other basic liability policy. If you are thinking of buying a personal liability policy, begin by finding out the maximum amount of personal liability your homeowners policy provides. Make sure you coordinate the liability limits so that the umbrella policy covers any liability claim in excess of the amount your basic policy will pay, up to the maximum limits of the policy.
Components to liability coverage under an auto policy?
Liability Coverage under an auto policy has what components: Medical payments Collision Comprehensive None of these Liability Coverage under an auto policy has what components: Medical payments Collision Comprehensive None of these Liability Coverage under an auto policy has what components: Liability Coverage under an auto policy has what components:
Is A property or liability insurance policy a business or liability contract?
A property is not a contract or a business. A liability insurance policy is a kind of contract but not a business. the answer is b...
Are defense expenses paid in a contractors professional liability policy?
A Professional liability insurance Policy, as well as a contractors General Liability Insurance policy will provide coverage for the cost of legal defense.
Does a commercial general liability policy also provide excess vehicular liability coverage beyond the coverage in the driver's separate mva policy?
No. A commercial liability policy specifically excludes liability arising out of the ownership, maintenance or use of a motor vehicle.
Does a builders risk policy provide liability?
It depends if the builder's risk policy is just for property or for property and liability. You can have a builder's risk policy, which includes general liability. If the insured is owner of the building, the general liability exposure is the cost of the project and will classes under subcontractor.
What is excess insurance mean on an subcontractors insurance?
The term 'excess' insurance is usually for liability coverage. An excess liability policy is also commonly referred to as an 'umbrella' policy because it offers additional coverage over other liability coverages. In the case of a subcontractors insurance, it would be a policy which would extend higher limits than the base policy on general liability and auto liability.
Is there an endorsement to a homeowners policy that extends liability for another residence?
No. You would need to purchase a policy for your additional residence and ask for liability coverage on it.
What kind of liability insurance does a nurse staffing agency need?
A commerical liability policy.
Do you have to provide a copy of your insured's liability policy to a claimant's attorney when requested in Ohio?
You don not have to provide a copy of your liability policy when requested. You only have to provide the policy if a court or judge requests it.
What is excess auto coverage?
I believe the term you are meaning to say is excess liability coverage. An excess liability policy act similar to an Umbrella policy that increases your liability limits on your underlying auto, home, boat, or rv policies at a very reasonable rate. An excess liability policy does differ from a true Umbrella policy so ask your agent to explain the differences and what is available for you.
What is a CLIP?
It is an acronym for Contractual Liability Insurance Policy.
