What is liability insurance and why would I need it?
Liability insurance is an insurance which is usually recommended for people in business. It is suggested that the small business owner and the sole traders have general liability insurance , as any claim by a third party could result in high court costs. Without an insurance such as this a third party claim could put a businesses future at risk. Legal costs on a public liability claim could be so high that a small business would face closure. There are two different types of liability insurance one is called claims made, this is where the insurer covers your business when a claim is make .
It is usually for people who are in the design or construction business that are most likely to take out a policy such as this one. It is usually for them to take out a policy such as this as it can be years after a property or building is constructed that a defect become apparent. The other insurance policy is an occurrence on , this is where in insurer, insures you at the time of an occurrence. It is the insurers responsibility to work alongside you until there is a resolve in the claim. The two policies are basically the same, the only difference is the timeline for which the insurers obligations begins and ends.
If you are unsure as to whether liability insurance is for you or not, it is well worth getting more information from the internet. There are lots of sites which offer useful information on all types of insurance, such as liability and home insurance. It can often prove a mine field getting the right insurance policy, but the key to success is to do your homework and know your stuff, before signing that crucial piece of paper. There are many blog sites and social networking sites which discuss liability insurance in more detail, these are written by ordinary folk who have taken out liability insurance and talk about their experiences. They are not written by the insurance companies, so you know that you are getting an honest and level headed view, rather than one that is made purely by the insurance company. These sites can also be helpful if you have decided on the insurance company you want, you can again get information about the company before taking that final step.