Home » INSURANCE » What is Liability insurance/ 6 Liability insurance Explained

What is Liability insurance/ 6 Liability insurance Explained

Liability insurance: This type of insurance contract is executed to reduce the liability of the person or organization. In case of death of the officer-employee working in the organization, the responsibility falls on the employer. The insured reduces the liability by the money received from the insurer through this insurance.

Includes employee insurance and reinsurance liability insurance.

The different types of liability insurance are discussed below:

Related: Types of Accident Insurance

Definition of Accident Insurance

Employer’s liability insurance:

If a worker or employee dies or is injured in an accident while working in a factory, the responsibility falls on the owner. Therefore, the contract that the factory owner enters into with the insurance company to avoid the liability caused by the accident of the workers working in the factory is called the liability insurance of the employer.

Public liability insurance:

Transport Owner Insurance for the compensation of its passengers due to various types of accidents during the movement of different vehicles (e.g., motor vehicles, trains or planes etc.). The insurance contract that you execute with the company is called public insurance.

Product liability insurance:

Conveying goods from one place to another by means of vehicles. Commodity liability insurance is an agreement that a transport owner enters into with an insurance company to obtain financial compensation for the loss or destruction of goods on the way to and from work. If the transport owner is the reason for such insurance, the transport company is liable for the loss caused by it.

Professional indemnity insurance:

While working in the industry, due to procedural reasons, in some cases, various types of professional resentment of the workers may arise. The factory owner is responsible for such anger. So the factory owner is bound by the agreement with the insurer to provide financial security to the workers against the loss of rage caused while working in his organization. This is called occupational compensation insurance.

Third Party Liability Insurance:

In case of any loss to the third party due to the policyholder’s own fault, third party liability insurance is purchased for the said compensation. In this case the insured (first party) purchases the insurance policy from the insurance company (second party) to meet the third party claim. For example, due to the fire in the insured’s institution, the adjacent institution was burnt down. In that case, the insurance company will pay the compensation that the adjacent company (third party) will demand from the insured.

General Liability Insurance:

Mass liability risk is compensated through general liability insurance. This risk includes physical injury or property damage due to the actions taken by the insured.

Related: 13 Types of Property Accident Insurance Explained

5 Types of Personal accident insurance

TAG: liability insurance example, professional liability insurance, business liability insurance, General Liability Insurance, Third Party Liability Insurance, Professional indemnity insurance.