Motor liability insurance only covers the losses of the other party.
There are many different types of insurance policies available, but liability insurance is one of the most popular because it costs so much less than many other options. For example, in relation to auto insurance policies, it costs much less than full coverage. The reason for this is because full coverage insurance must pay for your vehicle and any other vehicle involved in a collision, as well as for property damage and medical expenses due to injury to you or another party.
On the other hand, liability insurance is only responsible for the losses of the other party. Your person and property are unprotected, but insurance protects you from being liable for damages to the other party.
Often companies have liability insurance in case someone is injured on their property.
There are different types of liability insurance, including general liability, which covers companies. General liability protects the company from third-party claims. In addition to general liability, there is also D&O liability, employer liability and professional liability insurance.
D&O Liability means “directors and officers” liability and is intended to cover the acts or omissions of those who hold positions of directors or officers. An entire company shall not be held liable for statements, actions, omissions or other errors that are the responsibility of an officer or director.
Liability insurance protects the policyholder from losing money if he is at fault in an accident.
Employer liability is also known as worker’s compensation and is a mandatory form of liability insurance coverage that all companies must have. While it seems that the purpose is to protect the employee, which is true to some extent, it is actually protection for the employer in the event of injury, work-related illness, or other damages for which the employee may sue the company.
Medical professionals, such as surgeons, usually have malpractice insurance.
Professional liability is similar to malpractice insurance, although the coverage may not be as comprehensive as some malpractice policies in different fields. The purpose of professional liability insurance is to protect those seen as professionals or “experts” in a particular field, who may not be protected by general liability because of their specialization. When someone is seen as a professional, they are held to a higher standard and therefore often held accountable by their clients. Consequently, it needs more coverage than general liability insurance offers.