An insurance policy is a contract between the insured and the insurance company, and these two are usually the only parties involved in a property loss. Liability insurance, however, is sometimes called “third-party insurance” because three parties are involved in a liability loss; the insured, the insurance company, and the party who is injured or whose property is damaged by the insured.
Examples of Liability Insurance include the following:
- Auto Liability
- Commercial general Liability
- Personal Liability
- Professional Liability
Auto Liability Insurance covers an insured’s liability for bodily injury to others and damage to the property of others resulting from automobile accidents.
Commercial general liability insurance covers businesses for their liability for bodily injury and property damage. It can also include liability coverage for various other offenses that might give rise to claims, such as libel, slander, false arrest, and advertising injury.
Personal liability insurance provides liability coverage to individuals and families for bodily injury and property damage arising from the insured’s personal premises or activities.
Professional liability insurance protects physicians, accountants, architects, engineers, attorneys, insurance agents and brokers, and other professionals against liability arising out of their professional acts or omissions.
FUNDAMENTALS OF INSURANCE