Liability insurance protects you contrary to the nasty consequences of accidents. As you assess your insurance needs, protecting yourself, your family, your home, as well as your car, you should show healthy respect for Murphy's Law, expecting that whatever can go wrong will fail. And, as it goes wrong, it usually calls for the next-door neighbour's child.


Liability insurance for your car

Regulations requires that you carry liability insurance on your car. If you fail to show proof of adequate liability insurance, the government may suspend your driving privileges and soon you comply with the law. If a law enforcement officer stops you for a routine traffic violation and you also fail to provide proof of insurance, you could be taken to jail as well as your car impounded.

Out there in a large world filled with reckless drivers distracted by children and cell-phone conversations, your auto liability insurance will probably be worth every penny you pay-especially your uninsured motorist protection. Setting aside the legal mandate, consider the practical wisdom of liability insurance on your auto: In the event that you caused just a little fender-bender, you might absorb the expenses of another motorist's medical assistance and auto repairs. If, however, the unthinkable befell and you also caused a serious accident with multiple injuries, how could you begin to afford hundreds of thousands of dollars in medical and rehabilitation costs? This insurance protects not only your body and your body and your car but also all of your worldly assets.

Liability insurance for your home

Your mortgage lender may require that you carry liability insurance in your homeowner's package; but even if it is not required, you should add liability coverage to the insurance on your own home.

Take into account that your kids define "play" as "colliding with toys and one another at high speeds." As they become more proficient in their play, they add bicycles, scooters, and skateboards, so they more easily can achieve spectacular impact with the bottom, trees, fence posts, and concrete. When you own children bend, break, and mutilate their health in the course of routine play, your medical care insurance covers the price of repairing them. When the obnoxious neighbour's child sustains an injury on your own property, that exact same obnoxious neighbour may bring legal action against you for negligence or reckless endangerment. In a civil trial, your more-than-ever obnoxious neighbour may ask not only compensatory damages but additionally punitive damages. Judges and juries, wanting to teach allegedly negligent parents a lesson, may award substantial punitive damages even if it was evil little Johnny Jones's fault.

Other important liability protections

If you own your own business, your insurance package almost inevitably includes liability insurance, as you want to protect your employees and patrons from accident and injury while they take care of business. As Check out this site of your insurance, your underwriter may require proof your business complies with all applicable health and safety codes. If some time has passed since you conducted a safety review of your worksite, you might ask your insurance professional for assistance, assuring that you meet all of the law's as well as your policy's requirements.