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Facts about Personal Liability Insurance

Todays Date: November 16, 2018

If you are found guilty for any kind of accidents or misshaping with others or with their property you can be severely sued by the injured party. You can get indulge in lawsuits as a result of this kind of action. These types of claims seem to have costly lawful scuffle.

To get protected from such kind of accusations one has to get secured by purchasing Personal Liability Insurance. This type of policy generally contains two types of coverage personal injury liability and property damage liability. This insurance policy protects the policy holder from legal lawsuits for hurting someone or his property. This policy serves compensations for the third party and also covers bodily injury.  This policy includes three parties in it the insurance company, the injured party, and the insured party.

The policy not only provides coverage to the policy holder but also to his family, assets and others who live along with him. It is very obvious that the third party will sue you for your deeds. It can also be possible that your assets like your car, house or other expensive materials can be seized to make the compensation.  But you can protect yourself from this kind of situation if you have coverage of Personal liability insurance.

The premium of this policy is comparatively lower than other insurance policies. The rate of the premium depends on the size of protection you want. More the protection more will be the rate of premium. The premium must be paid to the company on monthly or annual basis. To make a settlement according to the courts orders a compensation of the money is paid to the injured third party by the company. The money can be paid in two different ways as in structured settlement or in a lump sum manner.

The cost of policy or premium is decided by the company based on certain factors like:

  • Number of employees
  • Annual sales
  • Number of clients
  • Nature of operation of company
  • Professional liability insurance cost
  • Public liability insurance cost

Related insurance cost that the company has purchased

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