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Insurance guarding against damage or loss that the policyholder, may cause another person in the form of bodily injury or property damage.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An insurance policy that guards the policyholder from legal expenses resulting from a lawsuit. This includes both attorneys' fees and damages that the policyholder must pay. Liability insurance is common in professions in which lawsuits are common, such as the medical field. A physician may buy liability insurance to protect himself/herself from the possibility that a patient will sue her for malpractice, negligence, or for any other reason. Premiums on liability insurance are sometimes considered prohibitively expensive, depending on the profession.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved