What Is Liability?
Do you speak “insurance” fluently? Even if you’ve held insurance policies for a long time and feel you understand all the lingo and key terms, it’s important to brush up every now and then. At Farm Bureau Insurance of Tennessee, our agents are dedicated to sharing their knowledge and expertise with you, so that you have a clear understanding of your coverage and protection.
Let’s talk about a key insurance term: liability.
What Is Liability?
Think of “liability” as “responsibility.” As it relates to insurance, liability refers to what you are responsible for covering should you end up in a situation where you’ve been found legally responsible for an accident that injures someone or damages property. If a court finds that you are legally responsible, you may be required to pay for:
Repairs to a vehicle or other property
Medical bills
Lost wages due to injury
Court costs and other compensation
The good news? Farm Bureau Insurance offers liability coverage for auto, home, and business that may help to cover the costs should you be found legally liable for an accident. Liability coverage can also help pay for your defense costs in court.
Key Types of Liability
There are a few key types of liability insurance coverage. It’s important to understand each one and what they cover, so you can make informed decisions about your insurance policy and what you have coverage for in the event of an accident.
Bodily Injury Liability: This type of insurance can help cover claims and your defense costs if you are found legally liable for a car accident that injures someone else.
Property Damage Liability: Likewise, this insurance can help cover claims and your defense costs if you’re found legally responsible for an accident that damages someone else’s property.
In Tennessee, drivers are required to provide proof of financial responsibility in the event of an auto accident, which most people do by purchasing liability automobile insurance. When it comes to liability for your homeowners insurance policy, you may be required to purchase liability insurance by your lender. The best practice is to purchase enough coverage to protect your assets. And liability coverage can help safeguard your business against the financial impacts of a lawsuit.
Every individual, family, or business has unique needs when it comes to liability insurance coverage. Your local Farm Bureau Insurance agent is your best resource for learning more about what you need to stay protected. Connect with one today.
