Third-party liability insurance comes into play when someone who is not associated with your business is injured while on your property. It is also important if a person’s personal possessions are damaged while on your property. When such third parties file a claim against your business, you need to have the right type of policy in place. This is where a third-party liability insurance policy will come in handy.
How Does Third-Party Liability Work?
Third-party insurance is a simple concept. Once you purchase a policy, you will have to pay monthly premiums to the insurance agency. The amount of premium is determined by the amount of coverage you need and the deductible you would be paying out of pocket. The deductible is the amount of money you will pay out of pocket each time you file a claim. If your property is damaged in any way, you must file a claim and pay the deductible. Once the deductible has been covered, you will receive compensation for the remaining amount of your loss.
The Significance of Third-Party Insurance
Third-party insurance is significant for many reasons. First and foremost, it protects you from devastating financial loss if your property is damaged. It is also beneficial if you are involved in an accident in which you must pay for the damage caused to others or the medical expenses they incur. Without having a third-party policy in place, you would have to bear the total weight of that financial responsibility. The amount you would end up owing out of pocket could cause tremendous financial hardship. With the right third-party policy in place, your risk will be dramatically reduced, and your financial future will be as secure as possible.
Are There Different Types of Third-Party Liability Insurance?
The different types of third-party liability insurance include:
- Homeowners insurance – Protects you if someone is injured while visiting your home
- Renters insurance – Protects you if someone is injured while visiting your rental home
- Auto insurance – Protects if you are involved in an accident where another person is injured or their property is damaged
- Commercial insurance – Protects your business from product liability or if someone is injured while on your company’s property
- Fleet insurance – Protects your company if one of your vehicles is involved in an accident where someone is injured or their property is damaged
- Boat insurance – Protects you if someone is injured or their property is damaged while you are operating your boat
- Motorcycle insurance – Protects you if another person is injured or their property is damaged while you are riding your motorcycle
These policies are written to provide liability insurance that will protect you if someone else is harmed or their property is damaged in any way while on your property.
When you have questions concerning how your insurance policies work or what type of coverage would best suit your needs, talk to the professionals at RMS Insurance Brokerage, LLC. Our agents have the knowledge and experience to provide you with the coverage you need to feel financially secure. Contact us today to get started!