Q: What is Liability Insurance?
A: An easy definition to understand is that liability insurance is a specific amount of coverage against third party claims.
So let's break that down. A specific amount of coverage means the amount in dollars on your actual policy. So every liability policy has a coverage limit and that is the most amount in terms of dollars that your insurance company will pay if a third party, so someone other than you, your family or property that you own or are responsible for, has damage.
So let me give you a couple of examples. First would be your kid is at school, takes a baseball bat, and whacks another kid and that kid is injured. That would be a liability claim. Let's say someone is walking across your property, slips and falls and gets hurt. That would be a liability claim on your homeowner's policy. If you're in your car and you rear end somebody, the damages to that other car would be liability insurance.
There's liability all throughout your life, your home, your cars, second home, your toys, things that you do, things that your direct family members do. So you, spouse, children, there is liability in all these different places and there are many different policies that you can purchase to protect you and your family. Your auto insurance policy, your homeowners, and a personal umbrella are three of the most common.
But I encourage you to look around TrustedChoice and learn a little bit more about these coverages. And if you do have questions, if you are interested in taking this conversation further, I encourage you to contact a TrustedChoice agent which you can find by searching right here on this site. My name is Ryan Hanley. I look forward to answering more of your questions asked right here at Ask an Agent in the future. Thank you.