Liability Insurance is what protects and safeguards businessmen from falling prey to the liability that their company has. This type of insurance is availed to an amount equal to the liability of the company so that when the time comes, the company is safe as well as the policy holder’s personal assets.
Liability Insurance is aimed at mainly covering the individual that runs the business from liabilities that the company is held responsible for and to keep him/her in safe zone in troubled times. Liability insurance covers secure the assets of the company and the individual running the company from being claimed for liabilities. Taru Financial Services insists that our patrons give more importance to liability cover on the individual (businessman) more than the stocks. This type of insurance covers cost for legal proceedings as well as payments, which the insured is held responsible for.
Liability insurance covers payments of damages occurred only when he/she is legally found to be guilty. Liability insurance doesn’t cover contractual liabilities and intentional damages.
Liability insurance is most significant and also commonly availed by people of the business class who might be held accountable for damages caused to others, especially businessmen.
For instance, a manufacturer will buy a liability insurance for his products just in case his products turn out to be faulty or becomes a reason to harm or cause damage to the consumers or any other third party for that matter. Businessmen usually avail liability insurance to cover damages caused to any of the employees during business operations or services.
Liabilities can pop up from anywhere and businessmen are vulnerable to charges from a range of liabilities. All these liabilities can subject the assets of the businessman to substantial claims. Protecting the assets is a very important task and every business man should have in place a well- structured asset protection liability insurance. The following are few important types of liability insurance.
Property that a businessman own is his personal asset but at times of hardship, it becomes a liability. Usually, when the company is in trouble, the employer tends to compromise on his personal assets to keep the company floating but that’s not the correct solution. Taru Financial Services will guide you to create a liability cover which keeps the personal property safe and uses the liability cover in case of need.
When a businessman finds himself in a situation where he/she has a liability to the company’s account for about Rs. 60 lakhs. These liabilities can come up from various sources like damage to other person or property by consumption of the policy holder’s product or service. When the company’s assets amount up to only Rs. 80 lakhs, the insurance provider insures the company for the remaining Rs. 20 lakhs which bridges the gap between the total asset value and liability.
This secures the safety and future of the company and makes sure it functions smoothly no matter what and also gives the owner of the company the monetary support to meet any liability with this amount instead of risking his personal assets that he/she had earned with a lot of hard work. It is common tendency for businessmen for letting go of their personal assets to make up for the losses and suffer losses to a great extent that few were not even left with a roof above their heads. Liability Cover puts you in the sweet spot where the liability is met, the company is safe and running and also the personal assets of the businessman is still within his control and not lost to liability.