Recap: What is Liability Coverage?

Did you see our blog last week about liability coverage? In case you missed it, here is a quick recap on what liability insurance is, and why it is such an important part of your insurance portfolio:

Liability insurance is protection to ensure that you are financially protected if you are held liable for damage or injury to someone else, most commonly due to a lawsuit. Liability insurance is almost always a part of insurance that you probably already hold, including home insurance, renter’s insurance, auto insurance, business insurance, and more.

And since you can truly never have too much protection, consider an umbrella insurance policy. One umbrella policy goes above and beyond all of your current liability coverage – meaning that if your costs and damages in a lawsuit exceed the liability limits on your home, renter’s, or auto policy, your umbrella insurance will kick in to extend your coverage. There is even commercial umbrella insurance available for businesses. These types of policies are very inexpensive, especially considering how much protection they offer.

So, have you talked to your Massachusetts insurance agency about how to mitigate liability risks? Call 617-298-0655 to talk to a Vargas and Vargas Insurance agent about your current liability coverage, and whether you should consider purchasing an umbrella insurance policy.

What Is Liability Coverage, and Why Do You Need It?

When talking about insurance, there are many ‘buzzwords’ used that many people don’t know the meaning of. One example of this type of term is ‘liability’ – many policies have liability protection built in, but do you know precisely what it is that this type of coverage protects you from?

This is a quick guide on Massachusetts liability insurance, including the definition of the coverage, explanations of the liability coverage you probably already have as a part of your current insurance products, and an easy way to get added liability protection.

What is Liability Insurance?

Liability insurance is the critical coverage that offers financial protection if you are sued or held legally liable for damages to another person, such as property damage, injury or negligence.

Let’s face it; we live in a litigious society where getting sued is more a right of passage than something that will never happen to you. What’s more is that being involved in a lawsuit is expensive. No one wants to have an unexpected outlay of that much cash, thankfully that’s what insurance is for! Liability protection will ensure that being involved in a lawsuit doesn’t ruin your financial future.

Depending on the details of your policy, liability insurance will often cover legal costs, and will also cover restitution including damages and/or the injured party’s medical bills, pain and suffering, lost wages, or death benefits.

Home Insurance and Renter’s Insurance Liability Coverage

When thinking of the coverage offered by a renter’s or home insurance policy, most people will immediately jump to coverage offered to fix things that are broken or damaged – but that’s not all that these policies include!

Home and Renter’s insurance often also includes liability coverage to protect against injury and damage to others in your home for which you are held liable. For example, this usually includes situations where someone falls or otherwise injures themselves on your property.

Massachusetts Auto Insurance Liability Coverage

Most states (including Massachusetts) require that a driver have a certain minimum amount of auto insurance coverage. This is to ensure that you will be covered if you are involved in an accident.

In Massachusetts, there are four required types of coverage when purchasing auto insurance:

  • Bodily Injury to others: $20,000 per person, $40,000 per accident
  • Personal Injury Protection (PIP): $8,000 per person, per accident
  • Bodily Injury Caused by an Uninsured Auto: $20,000 per person, $40,000 per accident
  • Damage to Someone Else’s Property: $5,000 per accident

Some of this coverage is to ensure that you are able to cover medical bills and property damage to another party if they are involved in an accident that is legally deemed to be ‘your fault.’ While we certainly never plan to be involved in an accident, it’s impossible to know when one will occur. More so, we don’t know whether our next accident will be a small fender bender or something more serious – that’s why the agents at Vargas and Vargas Insurance Agency often recommend that you carry more auto insurance protection than what is required by the state of Massachusetts.

Commercial Liability Insurance in Massachusetts

Businesses have a lot of moving parts. Whether you own a big or small business in Massachusetts, there is a potential that you will be held liable for damages by an employee, or even a customer. Thankfully, your business insurance will have built-in liability coverage for these situations as a part of your business insurance policy.

When speaking to your commercial insurance agent, make sure to ask about additional types of liability protection that your business may need, including EPLI, Product Liability Insurance, Indemnity Insurance, Directors and Officers (D&O) Liability Insurance, Errors and Omissions (E&O) Insurance, Cyber Liability and Data Breach, and more.

Get Umbrella Coverage for “Above and Beyond” Protection

So, how much liability protection do you need? There is no right answer, but the expert insurance agents here at Vargas and Vargas Insurance Agency agree: there’s no such thing as too much liability coverage. Thankfully, there’s an easy way to get this protection without increasing the coverage on each of your policies: get an umbrella insurance policy.

As discussed above, most policies have a liability component. The truth is that these are limited by the dollar amount set in the policy. Thankfully, umbrella insurance offers extra coverage that is very affordable. It offers a liability ‘umbrella’ on top of all of your existing policies. This means that if your costs or damages go above the original insurance policy’s limit, your umbrella coverage will kick in and ensure that you have added protection. This type of policy is available for both individuals and businesses, and the added protection is well worth the cost.

To talk to an experienced Massachusetts insurance agent about your liability protection, and to find out about our great deals on umbrella insurance policies, just call Vargas and Vargas Insurance Agency at 617-298-0655. We can get you a free umbrella insurance quote, or let you know where your liability coverage could use a little padding to ensure that your family or business is financially secure.