Liability Insurance

Insurance protecting the insured against financial loss arising out of legal liability imposed upon him/her in connection with bodily injuries (or death) suffered, or alleged to have suffered, by persons of the public, or damage caused to property other than property owned by or in the custody of the insured as a result of the maintenance of the premises, or the business operations of the insured.

It is a kind of insurance which pays and renders service on behalf of an insured for loss arising out of her responsibility to others imposed by law or assumed by contract. A simple example is: suppose Jones own a Motor Third Party Liability Insurance and he hits another car while driving.Then his insurance company will pay for the losses provided the losses are within the limit. There are several types of liability insurance some of the very common forms of Liability insurance are: General Liability, Employers Liability, Professional Liability, D & O Liability.

Sometimes called PLPD or Section “A” Coverage, this covers you as a vehicle owner and as a driver if you injure someone or damage someone else’s vehicle or property with your car. The minimum requirement in New Brunswick is $200,000, although many New Brunswick consumers choose to carry additional coverage.

Usually a mandatory form of insurance for professionals, covering expenses associated with a lawsuit and being sued by third parties for negligence. It is usually available through association plans and purchasing through an association's carrier is often the most cost effective.

(Assurance responsabilité civile) The type of insurance which covers an insured for his legal liability for bodily injuries or damage to the property of others. eg Automobile liability policies cover the insured’s liability arising out of the use and operation of a motor vehicle. Personal liability policies cover a broad range of situations in which the company agrees to assume the legal liability of the insured.