Liability insurance is a noun and defined by wordwebonline as: “insurance that provided protection from claims arising from injuries or damage to other people or property”. A more important definition would be whether or not you need liability insurance or if you can afford to be without it.

Both professional and personal protection can be provided for by use of liability insurance. Most homeowner's policies and business insurance contain liability clauses and are a part of the total coverage. This insurance is also contained in auto, boat, business, product, etc. policies. All professions from dancer to doctor to truck driver can buy liability insurance specially tailored to their needs. An especially important component of this professional liability insurance is called “Errors and Omissions”. This covers damage that might occur from, just what it says, an error and/or injury occurring if the professional did not do something resulting in bodily or property damage and would be the omission. Some general liability insurance policies include Workers Compensation coverage for a minimal yearly rate. Loss of business and money due to time spent in court or from negative reaction to allegations is another coverage afforded by liability insurance.

One way to save money on liability insurance premiums is to opt for a higher deductible, although the “out of pocket” cost, if you have to make a claim, might not be so desirable. There are also numerous sites online listing competing insurance companies. This is a convenient way to comparison shop and possibly save on rates. These sites include ask Jeeves and Google.

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