liability insuranceLiability insurance is when the insured becomes legally responsible for an accidental death or bodily injury or an illness of any person or the accidental loss of or the physical damage to tangible property which happened and which is connected to the business and which occurred within the environs of the business ( otherwise known as territorial claims). So if for example you have a vicious dog on your property, and someone has come to visit, your dog then bites this individual, causing grievous bodily harm, you will then be responsible for all medical bills which you can claim from liability insurance. Claims have to be made in writing.

Contactor liability insurance falls under the umbrella of liability insurance. If you hire contract workers to work on a project for you, and one or more are hurt or injured during the course of this contract, and this has occurred on your property, then you are responsible for the injury or injuries, or if their equipment was damaged on your property, they can claim from your liability insurance. That is the reason why liability insurance is so important.

There are, however, limits to the claim: the amount paid out is inclusive of any legal costs that have to be recovered from the insured by the person claiming or any other people that are claiming from the insured as well as any other costs or expenses that have been incurred during the incident, with the permission of the company. The claim should not exceed the limit of indemnity that is stated in the insurance schedule, though.

There are also territorial limits; in other words if the injury occurred anywhere in the world, but is not on the business premises and is outside, or if the work is for any contract work carried on  outside the territory insured, the claim is null and void as this has not taken place on the premises or the territory specified in the insurance schedule.

Liability insurance will also always have specific exceptions, therefore call on the expertise of your insurance broker or insurance company when you decide to take out cover for your business so that you will be covered at all times, especially if you employ contract workers.


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