Liability Insurance Definition

Liability Insurance is one of the benefits that exist in the insurance policy. The company bears and guarantee for losses suffered by third parties either. Losses can include objects or material loss or bodily injury caused by an events related to business activities or activities of the insured or policyholder. This can be interpreted as a kind of insurance or protection against liability due to negligence or fault of the insured by law (legal). Accountability of the public on goods and services (product), or on the ownership of the building / area.

Liability Insurance Coverage and Cost:
Who became the first party is insured or owner of an insurance policy. The second party is the person or in this case there is an insurance company that issued the policy of the insured. Third Party is the party of all parties outside the first and second parties. The third party is usually the general public who are disadvantaged by the insured. Then how the characteristics of losses that are guaranteed by the companies? Usually companies will guarantee the losses suffered by third parties in the form of: Third Party Property Damage covering the cost of repair, the cost of reinstatement, loss of rent, and direct consequential loss. In addition, there is protection against third party bodily injury which include compensation for medical care and related expenses, death benefits, permanent disability or disfigurement physical), income lost because of the accident, because of time spent Unable to work or undergoing treatment for injuries . Losing a job or fixed income or forever and is unable to work due to an accident. Loss of opportunity, social, and educational experiences, Including missed school or training, vacation or recreation, or a special event. Emotional damages, Reviews such as stress, embarrassment, depression, or strains on family relationships, for example, the inability to take care of children, anxiety over the effects of an accident on an unborn child, or interference with sexual relations. Defamation libel and slander, character assassination to someone, career jobs, politics, and more. Defence costs and expenses which includes defensive costs and expenses. This cost is a major component of most claims of claims claims of third parties usually consist of: the cost of lawyers in answering the summons, representing both in court and out of court, the court fee or court proceedings, witnesses fee, laboratory, survey teams, investigation , investigations are deemed necessary for the defense of claims, costs of negotiation, mediation, arbitration for the settlement of claims. Turns a lot of scope. If you want to understand it is necessary to listen to them one by one. So, if you are insured or a third party, then you can understand the right to be received by you from the insurance company.

Function of Liability Insurance
What is the function of the best  liability insurance? That is the question some clients when they are required to purchase it. The question there are two senses. Firstly, the clients of a company that doesn’t understand the importance of it. Second, the insurance company is not easy to sell a product liability insurance for new clients to buy when there is no contractual requirement for a necessity. Insurance liability or legal responsibility is a "necessity" for every business, from contractors to cleaning services even for homeowners stay though and even for everyone. Public liability insurance guarantee from a third party lawsuits for negligence committed by the insured person while performing business activities, which resulted in a third-party physical injury or damage to or loss of the belongings. There are products that combine public liability insurance and product liability, namely Comprehensive General Liability (CGL). Commercial General Liability (American Terms) or Comprehensive General Liability (European Terms) and the Combined General Liability (refer to package liability). CGL guarantee legal liability to third parties in the event of personal injury or property damage that occurs during the policy period caused by an event or events related to the business or activities of the insured. including legal expenses in relation thereto as described above. CGL guarantee is not limited to the activities of the company or the industry in the environment or activity area, but can be extended to the products produced or manufactured and marketed to consumers.
Along with the increased personal awareness and understanding of their rights under the laws and regulations in force, in case of interruption or loss by an enterprise or industrial activity, then the public can and tend to use their rights to legal redress . Consumer Protection Act and various other laws give high regard for the rights of consumers. It is to bring awareness to consumers rights to obtain a good quality product. All companies need protection CGL. Starting from liability a person as the owner or occupier homes, shopkeepers, restaurant, office, hotel, apartment managers, supermarkets, and industrial or manufacturing activity, and more. The owner of the building, is responsible for the activity or activities that take place in the area of ​​the environment, both the neighbors and the surrounding community, as well as to guests or visitors or customers who come in activity. Activity factory or manufacturing industry is responsible, but not limited to industrial activities they do at the site, but also to goods produced. Which may cause harm to consumers, such as toxicity, disability or death. Manufacturers or suppliers of raw materials is also not free from legal liability to third parties, which may result from damage or defects in material or material. Manufacturers of children's toys, one of the industry is in desperate need liability insurance products, in addition to required by law, and also to convince consumers that the products are harmless, non-toxic, does not cause health problems so it is safe to use or used by children.

Lawsuit from Third Parties (Liability Insurance)
Breach of statutory duty
Strict Liability
Vicarious Liability
Contractual Liability
Defamation: libel and slander

General Guarantee Consists of:
Public Liability
Product Liability
Workmen Compensation
Employers Liability

Automobile Liability


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