According to the Insurance Information Institute (III), 2.8% of auto losses in 2018 involved liability (2.4% bodily injury and property damage, 0.4% medical payments and other). Additionally, about one in 1,440 homeowners policies file a liability claim (bodily injury or property damage) annually.
But how would you fare if a liability loss arose? Would your home or auto policies provide coverage, or would you be left in the lurch? Let’s take a look.
Liability Protection Under an Auto Policy
Auto liability coverage is designed to cover bodily injury or property damage to a third party. For example, if you weren’t paying attention during heavy freeway traffic and accidentally rear-ended someone, your auto liability coverage would pay to repair their vehicle, as well as any injuries to their driver or their passengers.
Auto liability also covers liability for any pedestrians. So, if you accidentally struck a construction worker while driving, even if they’re not inside a vehicle at the time, your car insurance could pick up the tab for their injuries and lost wages.
Liability Protection Under a Homeowner’s Policy
Like with auto, homeowners liability coverage is also designed to cover bodily injury or property damage to a third party. For example, if you accidentally start a fire at someone else’s home, or if an individual has a slip and fall accident at your home, your homeowner’s insurance would likely provide coverage.
However, homeowner’s liability is a bit broader than under an auto policy since home liability coverage extends off the residence premises and will follow you anywhere in the world.
Is There Broader Liability Protection Under a Commercial Policy?
A commercial general liability (CGL) policy is designed to cover businesses against negligent acts caused by their services, operations, or employees. Therefore, while a CGL policy expands coverage beyond a personal lines home or auto policy, coverage is limited to business and commercial exposures.
Other types of commercial liability insurance, which are designed to cover different aspects of business, include:
- Cyber liability insurance — Protects companies against financial losses and legal claims resulting from data breaches, viruses, or other cyberattacks.
- Employment practices liability insurance — EPLI can protect you and your business against breach of employment contract, deprivation of career opportunity, discrimination, failure to employ or promote, mismanagement of employee benefit plans, negligent evaluation, and wrongful termination, discipline, or infliction of emotional distress.
- Directors and officers liability insurance — Covers financial losses caused from wrongful, negligent acts, or omissions or misleading statements committed by a company’s directors and officers.
- Professional liability (errors & omissions) insurance — E&O insurance protects against financial damages related to actions or actions that should have been taken. Examples include copyright Infringement, negligence, personal injury, and services performed.
- Liquor liability — Provides coverage for bodily injury and property damage as a result of “causing or contributing to the intoxication of any person, furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol, and violating any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.”
- International Product Liability Insurance — Protections include coverage against defects, product recalls, tampering, and a consumer’s humiliation, mental anguish, mental injury, and shock from physical harm.
- Environmental Liability Insurance — Covers losses and damages related to the accidental release of pollutants into the environment, including bodily injury, property damage, cleanup and defense costs, and business interruption.
How Can You Learn More About Home and Auto Liability Protections?
While home and auto policies provide liability protection against specific exposures, these scenarios are rarely cut and dry. That’s why the team at IHS Insurance Group can help answer your questions whenever you’re ready!
Need a FREE Quote or have questions regarding Home or Auto Insurance Coverage? We have three convenient ways to reach us:
- If you prefer to talk to a licensed agent directly, please call (866) 480-5063.
- If you prefer to fill out a quick form and have an agent get back to you at your convenience, use the GET A FREE QUOTE.
- Lastly, for those that want an immediate quote, please click HERE.
We look forward to speaking with you today!