Personal liability insurance, also known as “comprehensive personal liability (CPL) insurance,” is a component of homeowners insurance within an insurance policy that protects you and members of your household against claims resulting from injuries and damage to other people or their property.
It prevents you from having to pay large sums out of pocket if you are held legally responsible (liable) for something detrimental that happens to a third party. Personal Liability Insurance is designed to cover the insured, his spouse, child, and pets against injury or damage to a third party.
This insurance pays for damages that the insured is legally liable to pay in consequence of accidental death/injury or disease to third parties including damage to third party property due to any defect in the products manufactured. Exports to other countries can also be covered provided domestic sales are also covered.
It is largely about financial protection for you and your family and provides coverage to pay for claims of bodily injury and property damage sustained by others for which you or covered residents of your household are legally responsible.
The Advantages of Personal Liability Insurance
Cost of Repairs to Your Neighbour’s Property
Liability insurance covers any damage caused to your neighbours’ property by you, a member of your household, or a pet. A good example where liability coverage comes into play is when a tree in your compound falls and damages your neighbours’ property. Liability insurance will settle the cost of repairs.
Negligent Acts of Children
Children can be excessively playful and sometimes naughty; they go as far as indulging in mischievous games during their playtime, which could cost you a lot of money in damages.
For example, if your child throws a stone through your neighbours’ window, you will have to pay for the damage caused out of your pocket if you do not have liability insurance coverage.
Cost of Legal Defence
If someone files a case against you following an accident on their property then you have no choice but to answer to charges. Going through settlement cases can be an expensive journey if you do not hire a lawyer and pay for any legal fees if you are found responsible. The advantage of Personal Liability insurance is that it helps cover legal costs in case you find yourself in court.
Lost Wages
If someone is seriously injured on your property and it results in loss of wages, chances are that they may sue you for compensation. The compensation amount depends on the extent of the injury.
In some instances, your insurer may have to pay long-term benefits in case of permanent disability.
Liability Coverage Away from Home
Personal Liability insurance also protects you and your family members from any damages or financial losses that might occur when you are away from home.
For instance, if you are on vacation and you accidentally cause damage to certain items in your hotel room, liability coverage will reimburse the hotel accordingly.
Pet and Dog Bites
Another major advantage of personal liability insurance is that it goes a long way to cover damages incurred by your pets.
If your dog trespasses on your neighbours’ property and bites a member of that household, liability coverage will settle any medical costs that might arise.
Peace of Mind
When you are insured with Personal Liability insurance, you do not have to live with the constant fear of bearing certain expenses as a result of damages to your property or that of a neighbour.
Conclusively, having an insurer stand behind you in any situation is a strong asset. It is in their best interest to work on your case and provide you with the best support.
You can rest easy, knowing that someone has your back if something goes wrong and that the protection of your residence is no longer your responsibility.
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