Liability insurance is an insurance product that provides an insured party with protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found legally liable.
Liability insurance can be grouped as follows:
Personal Liability Insurance
Providing indemnity to the insured against claims resulting from injuries and damage to other people or property as the result of the insured negligence.
General Liability Insurance
General Liability Insurance can be divided into 3 categories:
- Public LIability
Covering the risks that occur in the Insured Company. So the risk that is guaranteed is the risk of the activities carried out in the insured company’s premises. Since Public Liability guarantees Premises risks, namely hazards in the area covered by the Insured and which result in damage or loss to the environment and people, except those suffered by workers from the Insured himself. Premises can be in the form of factories, cinemas, restaurants, shops and so on.
- Product Liability
Guarantee an entrepreneur against the risk of being sued by a third party (generally consumers of their products) due to bodily injury or property damage due to the use of their products that are beyond their control, namely products that are already circulating on the market.
- Employer’s Liability
If an employee is injured while carrying out his duties, the employer must be responsible for this injury, then the employee must be able to prove that the accident was caused by the negligence of the employer in providing facilities for the safety of his employees.
Professional Liability Insurance
Providing indemnity to the insured in connection with his legal responsibilities to other persons or related parties with bodily injury or loss of damage to property arising from the negligence of the insured’s profession or due to the negligence of his employees.
The process of the occurrence of a professional liability claim can take a long time and is divided into three stages: Failure to carry out the profession, Materialization of losses, Claim for compensation.
The process from one stage to another can take a long time. The consequences that arise from a doctor’s mistake in carrying out an operation, for example, can only be seen in a few months, even several years later.