With the help of the commercial liability insurance you can compensate for the damage that you have done to someone. Damage in this case is harm to health, life, movable or immovable property (that is, if you broke something, flooded, spoiled, someone suffered from your unintentional actions and the list of situations is not limited). There are two main categories of liability insurance.
Responsibility for causing harm – This type of insurance is necessary for people who are afraid of their careless actions to inflict the very damage from the definition above;
Responsibility for improper performance of the contract – In the same cases, this type of insurance is used in business.
Insurance for causing harm is useful if you did repairs and flooded the neighbors from below. Damage is different. For example, in the case of flooding there may be not only direct victims but also indirect ones. If you flooded the premises of the amateur theater downstairs viewers will be upset by the cancellation of the performance. However, they will not be able to demand money for moral damage from you.There are exceptions to the insured event. You will not be paid insurance if the insurance company or the victims prove that you acted intentionally or under the influence of narcotic substances.
How to determine the best quality insurance?
Before hiring this type of insurance, evaluate the risks to which your business is exposed and contract the indicated coverage’s.The insurances are like tailored suits, they should be adapted to your needs. The insurers also offer insurance of medical expenses for your employees in case of accident or illness, group life insurance that seeks to protect your employees and their beneficiaries in case of death. Before hiring insurance compare between different insurers, review the policy, read its general and specific conditions and review its exclusions. Check the sums insured for coverage and what percentage you have to pay in case of loss by co-insurance and / or deductible.
Insurance does not relieve you of full responsibility for the damage caused. Yes, the victim will receive financial compensation but at the same time you may incur criminal or administrative liability. In addition, the insurance company indemnifies the damage only within the limits of the insured amount if the damage that you have caused is estimated at a higher amount and you will have to pay extra. Under a liability insurance contract you cannot insure an illegal interest that is interests that are against the law and can harm other people. If a person is recognized as incapable and they have a trustee then all rights and obligations under insurance are transferred to them.