What is Liability Insurance?
Let's use your car as the easiest example of insurance for litigation purposes.
Coverage may include "liability" for injurious accidents caused by you or your permitted user as driver; "collision" for property damage involved; and "med pay" for medical payments to cover some treatment by the injured persons. The typical policy includes a maximum for one victim or an aggregate amount if multiple injury victims. Uninsured Motorist Coverage is generally equal to the Liability amount, unless you choose to pay a higher premium for greater protection for yourself, insuring against being in a car accident whose driver has no insurance. Under Insured Motorist Coverage may be purchased at a higher premium to protect you if the other driver has minimal insurance and your injuries deserve a bigger payout for medical treatment, disability and pain and suffering.
Coverage may include "liability" for injurious accidents caused by you or your permitted user as driver; "collision" for property damage involved; and "med pay" for medical payments to cover some treatment by the injured persons. The typical policy includes a maximum for one victim or an aggregate amount if multiple injury victims. Uninsured Motorist Coverage is generally equal to the Liability amount, unless you choose to pay a higher premium for greater protection for yourself, insuring against being in a car accident whose driver has no insurance. Under Insured Motorist Coverage may be purchased at a higher premium to protect you if the other driver has minimal insurance and your injuries deserve a bigger payout for medical treatment, disability and pain and suffering.
