Anyone who wants to defend themselves financially from the possible fallout of being found legally liable for injuring another person must first get personal injury liability insurance.
Homeowners, renters, and even business owners should consider this kind of insurance. But just what is personal injury liability insurance designed for? What’s the reason to have it?
In short, it offers a layer of financial defense that may stop catastrophic losses should a lawsuit arise. Of course, there are different layers to its coverage, so let’s take a look at what it can do for you if you have to hire an attorney for damages.
What Is Personal Injury Liability Coverage?
Many insurance plans, including homeowners, renters, and business insurance, come with personal injury liability coverage. Provided the injured party can prove you were negligent, it is intended to compensate for the expenses related to injuries resulting from your actions or occurring on your property.
The main focus here is negligence: should you be judged liable for careless or irresponsible behavior, this insurance kicks in to cover the related expenses.
Personal Injury Liability Insurance in Action
A visitor in your home slips over a loose rug and breaks an arm. If your guest chooses to sue you for the injury — alleging that you were careless in preserving a safe environment — your personal injury liability insurance would pay for any settlement or judgment given to the injured party as well as the legal fees and medical bills.
What Coverage Is Provided?
Personal injury liability insurance offers comprehensive protection covering a wide spectrum of possible events. Here are a few common situations when this insurance could prove vital:
Injuries on Your Property
Whether someone trips over a misplaced object, falls on an icy walkway, or suffers a dog attack, if the damage occurs on your property and you are deemed liable, your insurance should take care of the expenses.
Accidents Away from Home
Personal injury liability insurance can also cover events that happen off of your premises. Your insurance could still cover, for example, if your dog attacks someone while you are out for a walk or if you unintentionally hurt someone while participating in an activity off-site.
Damage to Someone Else’s Property
Personal injury liability insurance can pay the repair or replacement expenses should your activities harm another person’s property. This might cover events like your child accidentally shattering a neighbor’s window with a ball or a tree from your yard toppling onto a neighbor’s car.
Coverage Not Included in Personal Injury Liability Insurance
Although comprehensive protection is provided by personal injury liability insurance, it does have limitations. Here are some instances not covered:
Intentional Acts
Your insurance will not cover the related expenses if you or someone living with you purposely injure another person or their property.
Injuries to Home Members
Personal injury liability insurance does not cover injuries that you or anybody in your household sustain. Usually, they instead fall under health insurance or some other kind of personal coverage.
Business-Related Incidents
Your personal injury liability insurance will not apply should the damage or injury result from a business activity. Separate liability insurance helps business owners to manage these risks.
Injuries or losses stemming from auto accidents are usually covered under vehicle insurance rather than personal injury liability insurance.
What Is Personal Injury Liability Insurance Designed For?
In the litigious world of today, you run a greater chance of being sued than ever before. Acting as a financial cushion, personal injury liability insurance guards against the maybe catastrophic expenses of legal action.
Without this coverage, you might be liable for paying out-of-pocket for medical costs, legal defense, lost income, and other injury-claim-related fees.
Consider a scenario where someone on your property suffers major injuries. The expenses can rapidly rise; medical bills alone can be crippling; when you include legal fees, possible settlements, and compensation for pain and suffering, the financial toll can be disastrous.
Covering these expenses up to policy limits enables personal injury liability insurance aid to reduce these risks. So, what is personal injury liability insurance designed for? It’s basically a must-have in modern times if you hope to shield yourself against a multitude of potential incidents.
How Much Coverage Should You Get?
Your financial status, asset worth, and general risk profile will all affect the level of personal injury liability coverage you require. Most basic renters’ or standard homeowners’ insurance policies provide liability coverage between $100,000 and $500,000.
On the other hand, if you have major assets — think investments, savings, high-value property — you might want to think about buying an umbrella policy or changing your coverage limits.
Beyond the limitations of your main policy, umbrella insurance offers supplementary liability coverage and thus an extra layer of protection should a major disaster strike.
Getting Personal Injury Liability Insurance: What You Need to Know
If you already have a homeowners or renters insurance policy, personal injury liability coverage is likely included. Reviewing the declarations page of your insurance policy will explain your coverage limitations so that you can make sure they fit your situation.
Though less often used, standalone personal liability plans are available for persons without property insurance coverage. These policies can provide similar protection, offering peace of mind if you’re concerned about potential liability but don’t require property insurance.
See an insurance agent to review your present coverage and decide whether more is required. They can assist you in evaluating your risks and provide suitable insurance limits to guarantee you enough protection.
The Cost of Personal Injury Liability Insurance
The cost of personal injury liability insurance is typically included in the overall premium of a homeowners or renters insurance policy. The insurance limits, the value of your house and possessions, and where you reside will all affect the exact price that you pay for this coverage.
To illustrate, increasing your liability coverage from $100,000 to $500,000 will naturally raise your premium, but it also gives you better financial protection in the event of a claim. Including liability coverage, U.S. homeowners insurance typically runs around $1,500 annually or $125 a month.
Are You Facing a Personal Injury Claim? Call HoeyLegal Today
So, what is personal injury liability insurance designed for? It’s an invaluable part of any comprehensive insurance plan, offering much-needed defense against the financial consequences of being found negligent in damaging property or injuring another person.
Preserve your rights and secure the compensation you are due. See HoeyLegal now for a free consultation with our seasoned personal injury lawyers. Let us fight for the outcomes and justice you seek.