Personal liability insurance is designed to protect you against your potential personal liabilities. These include potential liabilities related to personal injury or property damage. Personal liability insurance is intended to cover the legal expenses associated with a claim and defend you if a lawsuit results. If you are found liable for a claim at trial, personal liability insurance may cover the damages, expenses, and punitive damages awarded to the claimant.
Of course, more than just having the insurance itself, it pays and helps to protect you when you understand what you need. Today, we will explore essential things you should know about personal liability insurance.
Here’s what you need to know:
What Does Personal Liability Insurance Cover?
If you have a policy that includes personal liability insurance, it will cover the expenses related to any claim of negligence or injury due to your carelessness. If you are found liable at trial, the insurance will cover your legal expenses (if you are found liable) and any damages awarded. Examples of claims that might be covered include:
- Personal injury claims
- Vehicle damage claims
- Animal damage claims
- Property damage claims
- Medical care
Personal liability insurance will also cover any legal expenses associated with these claims.
What Doesn’t Personal Liability Insurance Cover?
While personal liability insurance will cover many types of claims, it does not cover every claim that you may experience. For example, personal liability insurance will not cover intentional acts, such as any intentional injuries or damages caused by you to another person or property.
Personal liability insurance also does not cover bodily injury claims for which you have medical insurance. For example, if you are injured in a car accident and have medical health coverage, you will not be eligible to recover these expenses through your liability policy. However, you may be able to recover your medical costs if you do not have health insurance.
What Does a Claim Look Like?
Of course, a claim is a worst-case scenario that you hope will never happen to you. However, knowing what a claim looks like will help you be prepared if one comes your way. In a personal injury claim, there are two main types of claims made. There are also two main types of claims that will be needed to be resolved.
First of all, a claim is filed with the insurance company. This claim will be for the expenses associated with the injury or damage. The claimant files this type of claim. If a settlement is reached, the claimant will be required to sign a release of the claim.
However, if the insurance company cannot settle, the claimant will have to file a lawsuit against the policyholder. This lawsuit will be filed to decide the liability official. It will also be filed to award the damages. This lawsuit won’t just include claims for the bills, but it will also have a claim for legal expenses incurred as a result of the claim.
The Bottom Line
While not as fun to think about as house insurance, personal liability insurance is still a vital part of home risk management. Personal liability insurance will protect you from the expenses related to personal injury and damage claims. It may also protect you from any legal expenses incurred if you are liable for a claim.
If you are looking for reliable personal insurance, we can help you. At Jeffrey Bernard, we specialize in high-net-worth insurance products for wealthy individuals. We help them avoid, reduce and manage risk by evaluating exposures and pitfalls. Contact us today to learn more and get started!