Personal Liability Insurance: Description Of Personal Liability Insurance

Personal liability insurance will cover you financially if you fall victim to someone’s frivolous claim that you were negligent and caused them bodily injury, pain and suffering, in the amount of $10,000,000. You do have some personal liability coverage in your home insurance policy, or your renters, vehicle, boat, or business insurance policy; however, they usually have a low cap on their liability indemnity.

Personal liability insurance is considered an umbrella policy that will cover all of your other policies with additional personal liability coverage. The increase to your premium can be as low as $200 per year for an increase of $1,000,000 in personal liability insurance. If you do end up in court, you could be responsible for millions of dollars in a court judgment. If you do not have enough insurance to cover the amount for which you are sued, the courts will seize your assets for payment.

Here’s how it works if you are found liable: the liability coverage in the policy for your home, vehicle, business, etc., will be used first and if there is still a balance owed, your personal liability umbrella insurance will cover the rest.

Unfortunately, anyone can be sued for just about anything and suing your friend, neighbor or business associate is an accepted practice in American society. If you feel you are at high risk for being sued, you would be wise to invest in a personal liability insurance policy.

Personal Liability Insurance: Description Of Personal Liability Insurance

Before you buy extra coverage in the form of personal liability insurance, ask yourself a few questions:

  • How much are my assets worth?
  • How expensive are attorney and court fees?
  • Are you reckless? Are you a good driver?
  • Are the people you are responsible for reckless, for example, your teenager with a driver’s license?
  • Do you participate in high risk activities either at home or away? Home activities such as a pool in the backyard, and an away activity such as dirt bike racing.
  • Do you have a home business?
  • Are you in a business that comes with high risks of bodily injury, property damage, or perhaps of being accused of slander?

Personal liability insurance will not protect you if you deliberately intended to hurt someone. Personal liability insurance will help protect you financially if you are found responsible for unintentional negligence.

Personal Liability Insurance: What Does Personal Liability Insurance Cover?

Personal liability insurance is an umbrella policy that can be added to any of your current insurance policies. Personal liability insurance will cover you and your family during all of your activities, whether they are for business or pleasure. Your policy also includes coverage wherever you are, whether you are in your backyard or traveling around the world.

As a private individual, you can find yourself liable for your actions and those of your family and your pets. This includes what your children do whether or not they are under your direct supervision, and what your pet does at your home or anywhere else. Personal liability insurance will cover any claims against you and your loved ones.

You are also responsible for the reasonable maintenance of your home and yard. If someone slips and falls on your icy steps, you can be sued. If you are found guilty of bodily injury, your personal liability insurance will cover:

  • Lost wages.
  • Ambulance and hospital bills.
  • Death benefits.
  • All related expenses.
  • Pain and suffering.

Personal liability insurance will also cover personal property damages incurred by you or a member of your family. You can be sued for something as trivial as your dog destroying your neighbor’s running shoes by chewing them into little pieces. You can also be sued for something as serious as someone stealing your friend’s car from your driveway.

In a business atmosphere, you can be held responsible for very expensive problems. Your personal liability insurance policy will cover you for:

  • Accusations of slander, defamation of character, mental anguish, or invasion of privacy.
  • A customer slipping and falling while shopping at your store.
  • Damage to a customer’s property while you are repairing it in your repair shop.
  • People in the medical field carry malpractice liability insurance to protect themselves from patient lawsuits.
  • Engineers and architects carry professional liability insurance to protect themselves from customer’s claims of error.

Personal liability insurance will cover almost everything that you can be accused of, whether in the form of an action or inaction. How much coverage you need depends on what level of risk you are comfortable with and what will give you peace of mind.

Personal Liability Insurance: Who Needs Personal Liability Insurance?

Personal Liability Insurance: What Does Personal Liability Insurance Cover?

Personal liability insurance will financially cover you if your negligence resulted in someone’s bodily injury or property damage. Your personal liability insurance policy will also cover the people and animals who live in your home and for whom you are responsible. There are, however, people who need it more than others.

There are a number of high risks in your home that do require personal liability insurance coverage. These situations include:

  • Pets. Any type of pet can cause harm to a visitor. The family dog is a highly common source of injury claims and coverage is a must. There are even a number of breeds that are no longer insurable, including: Pit Bull, Rottweiler, Doberman pinscher, Akita and wolf-crosses.
  • Backyard activities. Pools, trampolines and skate ramps are considered high risk and warrant coverage.
  • Teenagers. As your child learns about adulthood and freedom, incidents occur. As a driver, he is at his most dangerous. Until your child becomes an experienced driver and a mature adult, personal liability insurance is highly recommended.
  • Social gatherings. If you host parties at your home on a regular basis, the probability of an injury or property damage multiplies. Insure yourself and enjoy your party.

If you are involved in activities that have a high risk of bodily injury, personal liability insurance is necessary. Examples of high risk activities include:

  • Whitewater rafting, mountain climbing, skiing and snowboarding.
  • A player for a recreational sports team such as hockey, football, rugby, or lacrosse.

In the professional world, there are a number of high-risk occupations that require a higher level of personal liability insurance than most.

  • The risk of being sued for negligence is high for medical professionals and pilots.
  • In the world of business, any professional advice you offer in a social setting can result in a lawsuit.

Providing a service to someone can put you in a position where a client can sue you for injury or damages. Personal liability insurance will cover you if you are a personal trainer, yoga instructor or any other type of fitness trainer. An injury can result in you, the trainer, being sued.

As a successful business person you can be a target for frivolous lawsuits. Even someone with an average income can find themselves facing an expensive lawsuit. Tally up your worth and your risk and make sure you have sufficient personal liability insurance for just such a contingency.

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