Types of Liability Insurance in USA

  • Many a times it so happens that the procedures and activities taking place in the Industrial sector and the commercial sector can affect certain third parties on various levels including the financial level. For example, if tourists or sub contractors are physically injured or damage is caused to their property etc.
  • Thus they do need some sort of protection from potential lawsuits. The laws pertaining to insurance, especially employer’s liability insurance or public liability insurance vary from state to state. In the case of many states in the US, however, either or both have been made compulsory by law. Even in the absence of such laws, many companies include types of liability insurance in their portfolio.
  • Many small scale businesses do not opt for liability insurance because the cost of premiums can prove to be very high. The legal costs in case of litigation can also become a burden and can far exceed those of premiums. Many sport venues like stadiums, clubs, multiplexes etc are places which generally opt for public liability insurance as the risk factor is pretty high at such places.

Product Liability Insurance

  • Product liability insurance is one such subcategory of liability insurance which has not been made compulsory by law, in most of the countries in the world.
  •  It is a good option for industries that produce goods that might directly have an adverse effect like pharmaceutical industries, electrical products, tobacco industry, fertilizers etc. An example of some well known cases includes a case against Mercedes Benz for producing unbalanced vehicles.

Employer’s Liability Insurance

Employers’ liability insurance in the US works through various administrative departments, in most cases, outside the boundaries of state and federal courts and thus the workers' compensation is highlighted separately from liability insurance.

  • In an industrial environment, there are chances of an employee getting hurt and the employer could be held accountable for it in the court of law. This sub category thus, is mostly related to such types of cases.

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