When you are fighting a lawsuit you have to handle a lot of financial losses and this may leave your bank account dry. So in the general insurance there is a part known as liability insurance that protects you in case of any lawsuit or any claims similar to these.
If your insurance policy covers the claim for which the lawsuit has been filed against you then you will be covered by this insurance. Here generally the party that is insured does not get the money instead the party that is claiming gets the payment.
It is the duty of the insurer to defend hard against such claims but being covered by the liability insurance makes it easier because then you will not have to make the hefty payment to the party that is suing you. The onus will come on the insurance company and you will thus be safe because such insurance will cover you for any accusations such as malpractice, injury or negligence. They will cover for the legal cost that is due on you as well as the legal payouts for which you must be determined liable legally.
Anyone who is liable for a lawsuit must buy this insurance and that will include the business owners, the medical practitioners, the building contractors etc. the liability insurance protects the product manufacturer in case his products turn out to be faulty or the building contractor who has shown negligence at the construction site or anybody who has to deal with the public and can be sued.
Liability Insurance 2, 10.0 out of 10 based on 2 ratings