types of liability insurance

Liability Insurance

Types of Liability Insurance

 

public liability insurance

 

Public liability:

This is a type of liability insurance policy that provides coverage to the insured against injury done to members of the public. Industries are normally involved in several activities that may cause harm to the public, sub-contractors, trespassers, visitors and … Claims can be made against such harms. This type of policy protects the insured against such claims. Businesses require this policy because the claims for injury done to the public can run in millions. The payment of such a high amount can lead to the collapse of a company. This is why companies must purchase this type of insurance. However, it is necessary for any business that wants to purchase this type of policy to consider all potential risk exposures to determine the amount of coverage required.

Want Cheap Public Liability Insurance?

make insurance cheaper

getting liability insurance is very helpful, but getting it at an affordable price is also very important. When shopping around for cheap public liability insurance remember to always think of your business in the back of your mind, because each business type has its pros and cons for getting insurance. If you own a public venue like a bar, or theatre your liability insurance premiums will be higher. Why? Well, if more people are coming in and out of your place of business there more chances that a person might file a claim against you. If you truly want to get cheap public liability insurance then find yourself a trustworthy company that knows how to handle almost any type of litigation. Besides, a trustworthy company will have enough capital so that they can hire the best law team to fight for your case. However, the best way to get cheap public liability insurance is to befriend an actuary because actuaries are the guys that figure out how much an insurance plan should cost. Your actuary friend probably works with an insurance company and could get you a discount rate on an insurance plan and that could get you cheap public liability insurance. The single best thing you can do to get cheap public liability insurance is to build a reputation with an insurance company. Yes, this means finding a public liability insurance plan paying for it for 1-2 years and have no claims against you. This will prove to the insurance company that you are a safe and reliable person and that they can afford to lower your premiums. This method may seem a bit counter-intuitive, you might be thinking to yourself “how can I get cheap public liability insurance if I pay more now?” However, if you think of public liability insurance like your car insurance it will make more sense. In a car insurance plan, you pay lower premiums every year when you do not get into an accident. The same logic applies to public liability insurance. If you do not have any claims brought on you year after year the insurance company will lower your rates and then you can have cheap public liability insurance.

Product liability insurance:

           What Does Product Liability Insurance Cover?

Product liability insurance, for the most part, covers claims involving a product’s manufacturing defects, design defects, and marketing defects. Manufacturing defects would involve any “mistakes” made when a product was manufactured that could cause harm to customers while design defects involve actual mistakes made when a product was designed that could harm customers. A mistake in design simply means failure to properly design a safe product. Manufacturing defects typically involve low-quality materials or poor workmanship during the physical manufacturing process. The best way to avoid this would be to choose a reliable company to manufacture your product, but even reliable companies can make mistakes, which is why it’s important to have product liability insurance. Marketing defects generally refer to cases where businesses fail to properly label their products. One example of a marketing defect would be if a toy company failed to put a warning label on their product stating something like “Warning: Small children should be supervised when playing with this product, as small pieces can be a choking hazard”.

          Buy Product Liability Insurance Businesses:

 

that directly sell products to customers can purchase numerous kinds of product liability insurance. Depending on what kinds of protection a business wants, a policy’s premium could vary greatly. A small business with only a handful of products may pay a much smaller premium than a large toy company with thousands of products. A large biopharmaceutical company that just released a new drug may have to pay tens of thousands a month in premiums, as if that drug proves to be dangerous, the insurance company would be on the hook for potentially billions in damages. Remember when Merck’s Vioxx drug was pulled off of the market? Merck had to pay billions of dollars to settle with customers – no insurance company wants to be on the hook for that kind of money. Restaurants, on the other hand, won’t have to pay very high premiums to get reasonable coverage, as simple cases involving food poisoning (which are rare) can usually be settled for under $10,000. Businesses are encouraged to shop around to find the best product liability insurance policy. for the small business owner, The small business owner must also consider the premiums for a product liability policy. The cost will be based upon the type of product, the volume of sales, and the role the small business owner plays in the process. The cost for such coverage is not outlined in stone. You should do some research online to find the average cost of such insurance for your particular state. Fortunately, the small business owner has several different liability carriers to choose from. Competition for this type of coverage is strong and the small business owner should shop it out amongst the different insurance companies. While the chances are small that a small business owner will ever face a product liability claim, it only takes one case that could exhaust the financial resources of the small business owner. Through the purchase of a product liability policy, the small business owner can transfer his risk onto the insurance carrier, and avoid potential ruin.

Think twice about the cost

Always make sure to check before closing on a deal that seems better than can be expected! Insurance companies consider a wide range of factors when looking towards insuring a company. From where the business is located to how many items are sold, the price is affected by every detail. Companies can work at keeping their liability costs low by making quality products so there are fewer suits and bundling their liability insurance with other insurances at the same company, but most of the other factors are determined based on what business you are trying to run.

Employers liability

Employers Liability Insurance Most insurance companies combine workers compensation insurance with employers liability insurance to meet the insurance needs created by the worker’s comp laws and regulations each U.S. state has enacted. Those laws and regulations hold an employer accountable for job-related disease or injury without regard to fault or negligence. Workers compensation coverage covers the statutory obligations of employers.

This coverage protects employees from loss of income and provides them with payment to cover medical expenses incurred due to work injuries or illness. Each state has its laws which govern how much employees receive under workers comp. Employers liability insurance covers work-related injuries that are not covered under the worker’s comp portion of the policy. As a business owner, this covers your legal obligations as an employer to pay damages due to bodily injury, disease and even accidental death of one of your employees.

This insurance coverage only applies if the injury or death of one of your workers is a result of an incident that happened on the job. Usually, the claims that employers liability insurance covers are those which arise when an employee is injured or becomes ill due to the negligence of the employer. It could be an injury caused by an accident that may have happened because of poor workplace conditions which could have been remedied or better controlled by the employer.

Employer liability insurance covers all employees that have working contracts with the employer. Both employers liability insurance and workers compensation are required by law in many states for all business owners who have employees working for them. The employer’s liability coverage protects the business against lawsuits that can be filed by an employee, his/her family members, relatives or third parties. Employees who have been injured due to employer negligence can seek compensation even if the business goes into liquidation. Employers liability insurance does not cover the employer against wrongful dismissal or sex discrimination claims.

premium insurance

The premiums of employers liability insurance are based on several factors including the company’s payroll, the types of services it provides as well as employee classification. What this means is that employees are classified by their specific work duties with a rate assigned to each employee classification code by the insurance company. It can be quite confusing for a business owner to know how much employers liability coverage he or she needs. It also can be difficult to understand the premium amounts one would have to pay as many factors decide the amount of the premium. It is therefore recommended that a business insurance broker be contacted so that the correct employer’s liability coverage is chosen. Small business start-ups who only have a few employees can easily obtain free, no-obligation quotes online from several insurance companies so that several policies and premiums can be compared. It is never wise to purchase business insurance if you do not fully understand all of the rules and implications of the coverage because having too little coverage could be devastating.

General liability:

As implicit from the name, this type of insurance policy embraces claims that come under other types of liability insurance such as public, employer and product liability. What is not covered by any of these types of policies? It is good to mention that none of these types of liability insurance policies protects the insured against any claim resulting from the intentional act. For example, a criminal act was done by the insured that causes another injury is never covered by any of these types of policies. General Liability Insurance at a Glance General liability insurance is one of the types of liability insurance that protects the insured against numerous kinds of claims resulting from damage inflicted on another by the insured. Any general liability insurance policy will clearly state what the maximum amount is that the insurance company will pay per event. For example, if a business has a $500,000 cap on its liability coverage and it is successfully sued for $600,000, the insurance company pays the $500,000 and the business must pay the other $100,000. To handle this type of case, many businesses buy ‘umbrella’ liability insurance which takes care of the excess amounts – in the case of the above example, the extra $100,000. The typical insurance company requires that a policyholder must immediately report any accidents that may lead to a liability claim. The event also must be very well documented and all summonses and legal notifications must be sent to the insurer immediately upon receiving them. The policyholder also must be fully cooperative if an investigation is ordered regarding the case. It can be confusing for a business owner to know exactly how much general liability coverage to buy. Having the right amount of coverage may mean the difference between success or failure when faced with an accident or a liability claim. That is why many business owners choose to work with independent insurance brokers. A broker is a ‘go-between’ for businesses and insurance companies. Once a business insurance broker is contacted and the company’s needs are discussed, he/she will search for and find the best general liability coverage for the company in question. General liability insurance The injury done may be bodily injury, personal injury, damage to another person’s property and injury caused by the insured business operation. In other words, general liability embraces other forms of liability insurance like public liability, employer’s liability and product liability. The way the policy is sold differs from countries to countries even though the general principle remains the same. General liability can be bought as a stand-alone policy. However, it is also available in combination with BOP which is an acronym for business owners’ policy. In the US, homeowners can buy this type of insurance in the form of homeowner’s insurance while it is available for businesses in the form of commercial general liability policies.

Who needs General Liability?

Numerous lawsuits and claims are being filed daily today. This is because people are becoming aware of their rights to file for damages. Nobody will like to spend money on injury inflicted by another person. Some of these injuries may result from accidents making it impossible for people to avoid. The above highlights the importance of covering one’s business with general liability insurance. In other words, virtually everybody needs this type of insurance. If you are a motorist, for example, certain fault in your car which you may not know can lead to an auto accident which might cause some injury to another person. The mistake of another driver can also get you involved in motor accidents. So, everybody needs such coverage. Small and medium businesses: if you are running a small or medium business, you need to buy this type of coverage to protect your business against any lawsuit resulting from injury caused by your product to the consumer as a result of production mistake or negligence. It will also protect you against injury sustained by your employee in the cause of their work. Contractors are among the people that require this type of insurance coverage. If you are a building contractor for example, and the building you are handling collapses causing serious injury to your worker or even a passerby, you will likely be sued for damages. With this type of insurance, you are protected against such claims. As it has been said, the above-mentioned individuals do not exhaust the list of people that need this type of insurance.

What does General liability cover?

General liability insurance as it is abbreviated covers a lot of things depending on the limits of your policy. Here are some of the damages that are covered by this type of insurance. Bodily injury: this refers to the physical injury done to another individual(s) that you are legally liable. Property damage: it is the damage done to another person’s property by the insured. Personal and advertising injury: claims made against you for libels Advantages The importance of GL for businesses cannot be overemphasized. It a veritable means through which businesses protect themselves against lawsuits resulting from the injury done to another in the cause of the execution of their work. The amount for some of these claims may be above the assets of your business. So, get GL and be protected against loss. Liability insurance companies What is liability insurance? This is a type of insurance that covers the insured against any form of liability arising from claims or lawsuits for injury done to another by the insured. The distinguishing feature of this type of insurance policy is that the compensation is not paid to the insured but to a third party who files the lawsuit for the injury done to him or her by the insured. However, the protection is given to insured only against claims and lawsuits that fall within the policy of the insurance coverage. Duties of liability insurers to the insured The liability insurance companies or insurers have several duties to the insured. Below are the duties of the insurers. The insurer must defend the insured if there is any lawsuit against the insured that falls within the coverage policy. However, it is the responsibility of the insured to inform the insurer about the lawsuit by tendering a defence of the claim to the company. The insured has to send the copy of the lawsuit with a cover letter calling for the defence about the relevant policy. The insurance company has three options. The insurer can honour the request and defends the insured. The second option for the insurance company is to seek a declaratory judgment of no coverage. The last option is to refuse to take either of the two options mentioned above. The second duty of the liability insurance company is to indemnify the insured. This means that the insurance must pay “the amount” declared by the court that the insured should pay to the claimant. However, it is the liability insurance policy that will determine the actual amount that the insurer is supposed to pay for injury done to another by the insured. In situations where the claim for the damages done is above the policy limit or is equal to the policy, then the insurance company has to settle reasonable claims. This duty is not generally obtainable in all jurisdictions in the US. This website is not an official one, so Plz contact experts to get yourself completely informed. thanks for reading.

 

Garage Liability Insurance:

  • Why should I get insurance for my mechanic garage?

Where heavy equipment or dangerous substances are involved, there is always the potential that someone may get hurt on the job. A mechanics garage fits the bill on both of them. They are a work environment that workers can easily get hurt, so it is in your best interest to get yourself some insurance.

  • What do you mean by “Garage”?

The garage can mean an auto service station or repair shop, but it could also include parking garages and other places that service or park cars.

  • What is Garage Keeper’s insurance?

Garage keepers insurance insures the owner of the garage personally, while garage liability is what covers the garage. They are usually lumped together under an umbrella policy. It also includes any possible wrong-doing by the owner or management in terms of discrimination or other hiring mistakes.

  • How do I avoid having to use my insurance?

Training your employees to not take any unnecessary risks is a great way to start, but this still might not be enough. Accidents happen and sometimes there is nothing you can do about it.

  • What if I take my chances?

Don’t do it. It’s a chance you can not take. It is important to get the right type of coverage so you don’t find yourself surprised if a claim should be made and your policy does not cover it. So always keep it up to date. Ask advice from the insurance agent and determine what your risks are and what amount of insurance you need.

  • What if I do have to file a claim?

That’s ok. Everybody who owns a business usually has to file a claim sooner or later. Make sure you have all the paperwork in order. If you can’t get everything done, ask your agent. They will be more than happy to help you get everything in order. The process usually goes pretty smoothly.

 

MT Liability Insurance.

 Why do I need it?

In every business that provides services or a product, there is always the chance that the company is going to be sued. This includes:

  • Injury to property
  • Damage to property
  • Injury on the premises
  • Giving an inaccurate diagnosis to a patient

People are quick to sue these days. Now, if there is just cause, fine, but you need to cover yourself or you could find yourself out of business.

So what is malpractice insurance?

Malpractice liability insurance is a bit more specific than regular liability insurance. When you hear the term malpractice, you get thoughts of surgeons botching major operations and doctors giving bad advice.

Is it just for doctors?

The medical profession is what we think of when it comes to malpractice, but it is also very common for:

  • Home Care professionals
  • Alternative medicine professionals
  • Dentist
  • Attorneys
  • Schools – This covers suits filed for injuries sustained by students while under the care of a teacher
  • Suits filed against a company for employment discrimination!

There are so many different things that constitute malpractice. This type of insurance is becoming needed by more and more types of businesses.

What is the standard cost? What are the limits of coverage?

Usually, you choose a policy that covers you for a certain amount of money per incident. You might be covered for $75,000 per incident for up to three times a year for a total of $225,000. It is usually shown on a policy as 75,000/225,000. In order to know how much coverage you should get you to need to: Understand your risk Be educated about what the insurance will do for you How high the costs can get Usually, if you use your malpractice liability insurance three times in a year, it is most likely going to cost you much more the next year. Just like other insurance, if you use it more, you will pay a higher premium. It is the way insurance companies have protected themselves for years. This type of insurance is expensive, but it is worth it for the peace of mind and is a must in certain professions. How do I pay for it? You can pay on a: Monthly Quarterly Semi-annually Annually Although this type of insurance is quite expensive, it is worth it for the peace of mind it gives when you go to work every day.

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