Five things you should know about liability insurance

1. In today’s litigious society, 1 in 12 Americans are sued each year, making liability insurance crucial to protect yourself and your loved ones. While many people think it won’t happen to them, the frightening reality is that anyone can be sued. Could your otherwise friendly dog ​​feel fear and harm someone? Can you be held liable for a car accident? Can someone injure your property? These are just a few of the most common ways you could end up with a lawsuit, putting your family’s finances at risk.

2. Whether you are a home or business owner, an important form of liability insurance is umbrella insurance. This type of coverage provides an additional layer of liability coverage over and above the liability limits of your existing policy and proves invaluable in the event of an accident or other situation that could lead to litigation. For example, if your auto insurance policy has a liability limit of $250,000 and you lose a $500,000 lawsuit due to an accident, you will only need to fund the remaining $250,000. An umbrella policy can prevent this and provide you with additional liability coverage in multi-million dollar increments to help you fund the costs of lawsuits, settlements and jury awards. Without this additional cover, you could be faced with a financial disaster in the event of a serious accident. A commercial umbrella policy works the same way, providing you with additional liability coverage for your business, on top of the existing liability limits of your commercial general liability policy.

3. As a business owner, there is a specific type of liability insurance you take out: commercial general liability coverage. In addition to your employee’s compensation coverage and commercial property insurance, this type of liability coverage will also prove invaluable in protecting your business from financial disaster. In the event that your business faces one of the most common types of lawsuits brought against businesses, including discrimination, harassment and wrongful termination according to, your insurance will provide coverage. Since losing a lawsuit could put some small businesses out of business, this type of coverage plays an important role in protecting the business you’ve worked hard to build.

4. Liability insurance is not only important for home and business owners, but is also proving critical in protecting people who are supposed to provide professional services, such as medical professionals. While all providers of professional services should protect themselves with professional indemnity insurance, physicians often face significant risks. According to the American Medical Association, six out of 10 physicians age 55 and older have been sued, illustrating the importance of professional liability coverage, which protects businesses and individuals from harm resulting from acts, errors or omissions in the performance of their professional duties. Professional liability insurance can help protect all medical professionals, from nurse practitioners to pediatricians, from the increased exposure they face.

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5. Since liability coverage plays a central role in protecting what matters most to you, from your home and family to your business, it’s important to rely on someone you can trust to help you get this kind of cover. Independent insurance agents help you understand your options, make coverage recommendations, and find the best liability policy for your specific needs, keeping your assets protected.