Sometimes, accidents just happen. You don’t mean for them to but, in a moment of distraction, your life gets changed forever.
When accidents happen, it’s up to the responsible party to pay for damages, regardless of circumstances.
Sometimes, these bills and fees can be extraordinarily exorbitant. There may be no way you could afford them on your own.
Unless you have liability insurance.
What is Liability Insurance?
It is a type of insurance which can cover property, legal and medical fees. But only if you’re found legally responsible for someone else’s harm.
It also holds if you’re found responsible for damage to someone else’s property. In other words, it protects you financially if you ever find yourself at fault for an unforeseen event or accident.
What Can it Cover?
The type of liability insurance you pick will determine your specific coverage.
There are two kinds of liability insurance:
- Bodily injury: This one is for medical expenses. It also covers legal fees.
- Property damage liability: This one is for repairs to damage to property. It protects more than just land, but personal property, as well.
What Does it Not Cover?
Typically, liability insurance doesn’t pay for anything another type of insurance would pay for, like if you were in a car accident—that’s what car insurance, like collision coverage, is for. It’s an additional personal insurance coverage which protects what other policies don’t.
It also doesn’t pay to repair damage from weather-related elements like floods or earthquakes. It would pas for medical treatment for somebody you caused harm to but may not pay for your injuries.
Are there Policy Limits?
There are limits on how much your insurance company pays for an accident where you are guilty. It all depends on how much liability coverage you have.
Every state has a minimum for both property damage and bodily injury liability. But it’s on you to decide if you want to buy additional coverage.
The more coverage you have, the more protection for your pockets.
Also, your coverage limits are dependent on the packages your insurance company offers. For example, there are some who don’t let you pick individual limits for property damage or bodily injury coverage.
You hope you don’t need liability insurance, but it’s always great when you have it. You never know what will happen.
Liability insurance ensures anyone you harm (albeit unintentionally) gets the help they need, while ensuring your assets are protected, as well.