Liability insurance is an imperative term of the general insurance system. Like other insurance policies, liability insurance is one kind of insurance policy that provides compensation or safety. Like any other insurance, two aspects covers this insurance policy such as insurance companies or agent those sale insurance policies and second one is policy purchaser which term is known as insured.
The term of liability insurance has specific laws that provide protection against of the third-party claims. Liability insurance basically covers different aspects such as property damage, bodily injury etc. In any case, the compensation will provide by the insurance company. The rules and regulations are lies according to the state and country so it may different.
Three liability coverage limits-
Insurance company or service provides are offering different kinds of liability coverage limits. Major three liability coverage limits have discussed below:
- Property damage liability limit
There is maximum amount of insurance is covered under the property damage liability limit. In the case of property damage liability coverage you would not cross the limit that you have set.
- Bodily injury liability limit per person
In this kind of liability coverage limit the amount of the compensation provided by the insurance company for each insured individually. The amount of compensation will be provided according to the damage of an accident.
- Bodily injury liability limit per accident
This kind of liability coverage will provide the maximum compensation as per the injury to individual. This limit is contained minimum amount that is provided for all medical expenses.
The bottom line
Insurance policies have different aspect so if you want to buy liability insurance, according to the kind of policy contact to the legal expert. Taking legal advice will be beneficial to choose the insurance policy.