General Liability insurance

General Liability Insurance: How to stay protected

What is liability insurance?

Liability Insurance

Medical and legal costs are covered by liability insurance if you are deemed legally accountable for someone else’s harm or damage to someone else’s property. A minimum level of liability insurance is mandated by law in all but a handful of states.

What is auto liability insurance?

You can protect yourself financially if you’re found to be at fault in a car accident by purchasing liability insurance. Injured people’s medical expenditures or the repair of a car can be covered by this type of insurance. In most states, drivers are obliged to have some form of liability insurance.

What Is Covered By Liability Insurance?

Two types of liability insurance are available: bodily injury and property damage. This is how they’re broken down:

Bodily injury liability coverage (sometimes abbreviated as “BI”)

  • If you’re determined to be at fault for an accident, bodily injury can help cover the costs of an injured party’s medical care. In the event of a lawsuit, it can help pay for legal bills.

Property damage liability coverage (sometimes abbreviated as “PD”)

  • If you damage someone else’s property, this insurance might assist cover the costs of repairs. For example, if you hit another car from behind, you may be able to use the money to pay for auto shop fees rather than having to foot the entire tab alone.

Liability Insurance Coverage Limits

Depending on the policy limitations you select, your insurer will pay a certain amount for a covered liability insurance claim. All states require drivers to acquire a minimum amount of personal injury and property damage insurance, but you may choose to get additional coverage. Your automobile insurance policy may have three liability coverage limits:

Property damage liability limit.

  • The most your insurance company will pay to repair damage to another party’s property that you cause. If you’ve specified a maximum payout amount, you won’t be able to surpass that amount.

Bodily injury liability limit per person.

  • This is the most you can be held liable for if you cause an accident and someone gets hurt.

Bodily injury liability limit per accident.

  • In the event of a single accident in which you are found to be at fault, your insurance company will cover all of your medical costs. Setting a limit on the amount of money you can contribute to a health insurance policy is critical since it may be necessary to cover the medical costs of many people.

Packaged bodily injury and property damage limits are the norm for most insurers today. It could look like this, for instance:

  • 25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit)
  • 100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)

Packages offered by your insurance company determine your coverage limits. Individual limits for bodily injury and property damage coverage may not be available to you, depending on the policy you purchase.

How Much Does Liability Insurance Cost?

Liability insurance premiums are determined by a variety of factors, one of which is the amount of coverage you acquire. The more liability insurance you get, the more it will cost you. It’s possible to find out how much more your insurance will cost if you raise your limit with your provider.

How Much Liability Insurance Should You Buy?

Expenses in excess of your liability coverage limitations are your responsibility. Increasing your auto liability limits over the state’s minimum standards may be a wise idea.

What does liability insurance not cover?

Collision coverage, on the other hand, pays for damage to your own vehicle in the event of an accident. Additionally, comprehensive coverage doesn’t compensate for damage caused by other factors, such as hail.

Injuries to yourself are not covered by liability insurance, which helps cover the costs of someone else’s medical bills as a result of your negligence. Depending on the state where you live, you may want to look into medical cost coverage or personal injury protection.

Contact your insurance company if you have any questions about your state’s coverage requirements for motor liability insurance.


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