Liability insurance policies in USA are purchased by customers as a means to defend themselves in case of legal lawsuits filed against them due to any harm caused by their occupation or business to a 3rd party or the general public. To avail this insurance policy, the client is supposed to pay a stipulated monthly or annual amount as a premium to cover the costs sustained due to legal formalities.
The cost of the liability insurance policy in USA varies from state to state and from company to company. The insurance company takes into account various factors such as the type of the business of the client, number of employees working for the client and the total number of yearly sales of the company while calculating the total premium supposed to be paid by the insured client.
The insurance company will provide the liability insurance policy under definite circumstances. The company will first see if the client company is taking up large amounts of land for its business or if the client is involved in business that is potentially risky. It will also note if the product liability of the business is higher than the cost of the policy.
Once the client signs the liability insurance policy, the insurance company is legally responsible for defending the client in case of legal proceedings against their client. The company can refuse to cover the damages when the client causes damages either intentionally or due to specific contractual liabilities.
There are 3 major types of Liability insurance policy in USA which differ in terms of costs and they also have slight differences in the policies.
The costs of different policies differ greatly as they cater to different clients and different businesses. In USA, a business that is related to home based child care, the annual rates of the same are about US $400 to US $800 whereas any work related to Photography costs up to US $100 to US $2000