Liability Insurance Definition

Term Definition
Liability insurance is an insurance policy which can be purchased by business owners as protection against expenses due to personal injury or property damage.

Extended Definition
Liability insurance policies can offer protection for business owners against payments as the result of property damage, accident, injury, malpractice, or negligence. Policies may cover medical costs, as well as legal defense and settlement costs that the insured individual would be found liable for if taken to court.

Related Article
Liability Insurance: Be Protected and Prepared