LIABILITY INSURANCE Meaning and
Definition
-
Liability insurance refers to a type of insurance coverage that offers protection for an individual or business entity against legal claims and financial losses resulting from their actions or omissions that cause injury or damage to others. It is a contractual agreement between the insured party (the policyholder) and the insurance company, where the insurer assumes the responsibility of paying the costs associated with legal defense, settlements, or judgments imposed in a covered liability claim.
Liability insurance is generally designed to cover various types of liabilities, such as bodily injury, property damage, and personal/advertising injury. This coverage extends to incidents that occur on the policyholder's premises, as well as those that happen off-site, but are still within the policy's coverage terms and conditions. It is important to note that liability insurance typically does not cover intentional acts or criminal offenses committed by the insured.
The primary purpose of liability insurance is to protect the policyholder from significant financial losses due to legal claims and compensate the injured parties for their losses. It also helps to ensure the viability and continuity of business operations by safeguarding against potentially crippling litigation costs. Liability insurance is a critical form of protection for individuals, professionals, and businesses in various sectors and industries, including but not limited to, healthcare, construction, manufacturing, and professional services. The specific coverage limits and terms will vary depending on the policy's scope, as determined by the insurer and the policyholder during the insurance contract negotiation.
Common Misspellings for LIABILITY INSURANCE
- kiability insurance
- piability insurance
- oiability insurance
- luability insurance
- ljability insurance
- lkability insurance
- loability insurance
- l9ability insurance
- l8ability insurance
- lizbility insurance
- lisbility insurance
- liwbility insurance
- liqbility insurance
- liavility insurance
- lianility insurance
- liahility insurance
- liagility insurance
- liabulity insurance
- liabjlity insurance
- liabklity insurance
Etymology of LIABILITY INSURANCE
The word "liability" comes from the Old French word "liable" which means "bound or legally responsible". It is derived from the Latin word "ligare" which means "to bind". The term "insurance" originates from the Latin word "assurantia", through the Medieval Latin word "assicurantia", meaning "to assure". Hence, the etymology of "liability insurance" refers to an assurance or coverage for legal responsibility or binding obligation.
Infographic
Add the infographic to your website:
