A life insurance policy pays out a certain amount of money in the event that the insured passes away. It offers the family or dependents of the dead financial support. Employers may offer health insurance or a person may purchase it to cover medical costs. Property damage or loss resulting from fire, theft, or other covered incidents is covered by property insurance. Vehicle loss or damage resulting from theft or accidents is covered by auto insurance. When a handicap stops the policyholder from working, disability insurance replaces lost income.
Liability insurance protects the policyholder from lawsuits brought by third parties who have been injured or harmed as a result of the policyholder’s conduct. Public liability insurance and commercial general liability insurance (CGL) are the two primary categories of liability insurance. Public liability insurance provides coverage for claims made by members of the public for harm or loss brought on by the policyholder’s conduct. Businesses that deal with the public, including restaurants and retail outlets, frequently buy it. CGL insurance covers third-party claims for harm or loss brought on by the policyholder’s conduct. Businesses that take on greater risk, such manufacturers or construction firms, are more likely to buy it. CGL coverage is available for personal injury, property damage, and bodily harm.
Product liability is a category of responsibility that results from the use of a defective product, and it can be covered by CGL policies. However, intentional acts, pollution, and professional services are typically not covered by CGL coverage. Additionally, the amount of coverage offered by CGL plans is limited, therefore policyholders might need to get excess liability insurance to cover the remaining sum.
In conclusion, insurance is a crucial component of safeguarding one’s finances and those of their company. Life insurance, health insurance, property insurance, vehicle insurance, liability insurance, and disability insurance are the six main categories of insurance. Liability insurance covers third-party claims for harm or loss brought on by the policyholder’s conduct. Public claims for injuries or property damage brought by the general public are covered by public liability insurance. CGL insurance, which is often obtained by companies engaged in higher-risk operations, covers claims filed by third parties for injuries or damages brought about by the policyholder’s acts.