Personal liability insurance (2024)

FAQs

Is it a good idea to get personal liability insurance? ›

It pays your legal fees and court costs, as well as the medical expenses and lost wages for the injured person. A good rule of thumb is to buy enough personal liability insurance to cover your net worth. This ensures your assets are protected in the event of a lawsuit.

Personal liability occurs in the event an accident, in or out of your home, that results in bodily injury or property damage that you are held legally responsible for.

This allows you to pay for some, if not all, injuries and damages you're liable for in an accident. The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person. $50,000 in total bodily injury per accident. $25,000 for property damage per accident.

Why is liability insurance so cheap? Liability insurance is generally the cheapest car insurance coverage because it only covers the cost of bodily injuries and property damages for another party if you're at fault for an accident. It doesn't cover damages to your vehicle or costs associated with your injuries.

There are a number of factors that influence how expensive health insurance is for individuals and their families. The complexity of the healthcare system, technological advances, administrative overhead, the rise of prescription drug costs, and lifestyle costs all play a factor in ballooning healthcare expenses.

Personal liability is a very real concern for many business owners. There are a number of situations in which an individual may become personally liable to pay business debts or make payments to third parties; even where that individual has been acting in a professional capacity.

Premises liability claims are about unsafe conditions on someone's property. Personal liability is about someone's own actions. In either case, you might deserve compensation if someone else was careless.

Personal liability limits

You may be able to choose your personal liability coverage limit; often the three choices are $100,000, $300,000, or $500,000. Your limit typically applies to covered damages that you're legally liable for. Get tips for figuring out how much homeowners insurance you need.

Adding comprehensive and collision coverage costs more than minimum liability coverage since it provides significantly more protection. And you may be willing to pay the higher premium if you wouldn't be able to replace your car out of pocket if you cause an accident.

What is the difference between personal property and personal liability insurance? ›

The difference between personal liability and property liability is that property liability covers damage you cause to another person's property, such as in a car accident, while personal liability covers damage or injury to another person which you are legally liable for.

It is not a substitute for health insurance. Business activities are also excluded. All of the exclusions and specific language can be found in your policy.