Third party liability coverage is purchased from the insurance company in order to protect against claims from other people (third party) for injuries or damages you may have caused. This includes damages to someone’s property, the cause of serious injuries, or death.
Bodily injury liability covers all medical expenses; hospital bills, lost wages, and also includes pain and suffering. One of the most common questions we got is: What is third party liability insurance? Third party liability insurance is important for those who have assets that need to be protected. Third-party liability coverage comes bundled into most homeowners, renters, and business policies and is usually required as part of your car insurance policy.
One of the main reasons for acquiring third-party liability coverage is because if you, your house, your car, your dog, your business, etc. manage to cause another bodily injuries or damage comes to a third party, you could be responsible. And there will be a very likely chance that a lawsuit will follow.
Litigation is common these days and you will be looking at serious expenses for both legal and any other settlements.
Most third-party coverage is required and built into your insurance plans.
This coverage is mandatory in all states and cover’s physical injury due to an accident that you (or the guilty party) is responsible for. Coverage extends to physical injuries, pain and suffering, and death.
Bodily injury coverage includes the following:
Third-party liability coverage helps pay for any damage that was done to your property by another vehicle. While we think of property damage as just being to a car or other entity, this also includes trees, fences, mailboxes, garages, etc. This is also considered coverage that is required. This is not designed to cover your medical bill or pay to repair your vehicle – this is solely for the purpose of damage to property.
Homeowners insurance pays to repair and rebuild your property should there be any accidents. Insurance coverage offers third-party protection against any claims of liability and covers most medical costs, lawsuits, pain and suffering, loss of wages, and death benefits.
Homeowners insurance covers the following:
Most insurance companies offer what is called an Umbrella Policy. This policy kicks in when you reach the limits on your auto or homeowners policy. They like to think of it as extra liability protection. The wonderful thing about an umbrella policy is that they offer so much more liability coverage at very reasonable prices. Premiums can vary from $150-250 per year for $1 million in coverage.
This coverage is usually bundled into many of the above policies we mentioned above – there is a good chance that you already have coverage in your auto, home, renters, insurance plans.
Liability coverage only pays out to the policy limit and making sure to set the right limits is extremely important with third-party liability insurance coverage.
If you are in need of a personal injury lawyer and have questions, please do not hesitate to contact our office.