What does liability insurance cover?

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Liability insurance is said to be one of the most important type of insurance for businesses. This is because it helps protect your business from financial losses if you are sued for damages or if you cause an accident that injured someone. There are different types of liability insurance, but most policy will cover bodily injury, medical expenses, legal fees and property damages. Other policies will cover punitive damages, these are damages awarded to punish the insured for particularly reckless behaviour or behaviours that are harmful. Liability insurance is very important because it will help you cover the cost of lawsuit settlement or judgement against you. Without a liability insurance, you could be on the hook of thousands of dollars in legal fees and damages. You should consider buying liability insurance if you have any assets. Even if you don't have much money, liability insurance can help protect you from losing your home, your car or other assets if you are sued.