Liability insurance, or life insurance, can be an important part of protecting your financial future in the event of an accident or injury. In most cases, you’ll have to show that you’re able to provide financial support if someone gets hurt as a result of your actions.
Liability insurance can protect you from this responsibility by covering you in the event of accidental injury, both to yourself and others. Here are three things you should know about liability insurance before deciding whether or not it’s right for you.
1) What Is liability insurance?
A type of insurance that protects your assets against damages caused by an accident or other serious injury. It’s also called life insurance, and it can be used to protect you from financial losses if an accident occurs.
If you cause property damage or physical harm to another person, liability insurance will help cover the costs associated with these incidents.
2) Types of Liability Insurance
Three main types of liability insurance exist: personal, commercial and errors and omissions. Personal liability insurance is an important part of your overall financial plan as it covers any damages you or your family might cause to other people or their property.
Errors and omissions coverage protects against claims related to mistakes in professional service such as architecture, accounting, engineering, law or consulting work.
3) How Much Does it Cost?
According to a recent survey, liability insurance costs an average of $41 per month. The price can vary, however, depending on your occupation. For example, if you work in healthcare or education, it will be more expensive than for jobs in other fields.
No matter what job you have, though, liability insurance is almost always required by your employer as part of your benefits package.