Liability insurance is used whenever there is a risk of taking legal action as claimed by the third parties. In most of the cases, this type of insurance is mandatory. There are different types of liability insurances which are suitable according to your needs. Apart from the general liabilities insurance there are different types of liabilities insurance which are very important.
- The first and the foremost one is the public liability. Most of the organizations use this public liability insurance. It provides the cover from the claims which are being made by the public who are being suffering form the loss or damage or injury.
- The next one is product liability. It is not mandatory for all the countries or organizations. This will protect the insurer from the claims of the injuries to the customer as a result of your product and also protects from damage for their property. So, one should compensate regarding the loss. It also protects from the claims of the defective products.
- Employer liability Insurance is used a mandatory one in any business. It sounds as if it sounds it protects the employees, but in actual practice, it is used for protecting the employer against the claims of the employee.
- Directors and officers liability is used for covering the acts of the persons who are in the directors or officers position. For the mistakes of the directors or the officers the entire company should not be liable.
- Coming to the fifth one which is also called as the malpractice insurance. The professional liability insurance, protects the professional people from being claimed by the third party.