Third-party liability insurance protects the insured from legal liability claims presented by third parties. Policies insure against many types of liability, such as
Legal Liability, the obligation of one party to another under the terms of the law. When the insured is determined to be liable for injury or damage to the third party, the insurance policy will pay or indemnify on behalf of the insured.
Third-Party Claims, where the insurer settles the claim with the other party, known as a claimant. The payments from the insurance policy are made to the claimant and not the insured.
Types of Liability Insurance, includes many types of activity and liability. Common examples are automobile liability which covered by our Motor Insurance Policy, Management liability covered by our D&O Policy, personal liability, pollution legal liability and Errors and Omissions, covered by our Professional Indemnity Insurance, for Architects & Engineers and other Miscellaneous Professions. Other Liability Covers
Management liability is covered by our D&O Policy;
Personal liability, pollution legal liability and Errors and Omissions, is covered by our Professional Indemnity Insurance which could be for Architects & Engineers (annual or Per Project basis) or other Miscellaneous Professions.
Defense Costs, for your further information, are commonly also covered under the liability policies in a lawsuit and these expenses can often be greater than the ultimate indemnity settlement with the claimant, lending increased importance to the purchase of such coverage by all businesses.