Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims.
It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.
Originally, individuals or companies that faced a common peril formed a group and created a self-help fund out of which to pay compensation should any member ensure.
Originally, individuals or companies that faced a common peril formed a group and created a self-help fund out of which to pay compensation should any member incur a loss (in other words, a mutual insurance arrangement).
Basically, Liability Insurance is a kind of risk protection which pays the cost of your defenses and secures your assets as well.
Especially when an organization runs the risk of harming and damaging someone or something during the course of standard operations.
However, it can decrease; for that, your firm will be charged, then it can never exclude the risk totally.
General Liability insurance is used to refer to liability insurance for businesses. It provides coverage for lawsuits due to “premises and operations” and “products and completed operations”. It may be written stand-alone or as part of a package including property insurance.