Liability Insurance: Definitions and Terms Definition of Liability Insurance: The simplest definition of 'pflegezusatzversicherung' is the Insurance coverage to protect against claims alleging that one's negligence or inappropriate action resulted in bodily injury or property damage. People & organizations can and do mistakes for which they become liable if and when these acts ruled to be the cause for damaging the bodies or the properties of others. This is when insurance policies come to provide the protection. Liability coverage pays when the insured is legally liable for the negligent act. In some situations, the coverage provides protection if the insured becomes 'morally obligated' to a party that is damaged by the non-negligent acts of the insured. People/ organizations vary widely in their social and business conduct and so does the coverage that is needed to protect them. For each category of people/ organizations there are different coverages that provide the protections. Different people/ organizations need different types/ amounts of liability coverage. Classification of Liability Personal vs. Commercial Liability: Personal liability insurance provides coverage for individuals while commercial liability provides coverage for a business entity. A 4-door sedan car needs personal auto liability policy. If the same vehicle is used for delivery, then it may require a commercial auto policy. Personal Liability Protection normally comes in personal policies such as Personal Auto Policies (PAPs), Homeowners Insurance Policies, boat policies, and Personal Umbrellas. These coverages pay for damages that the Insured causes to the bodily injuries, personal injuries, property damages, legal defense in connection with claims brought against the Insured. Business/ Commercial Liability Protection: Comes to cover businesses and/or individuals in connection with their business conducts. Premises Liability applies when someone other than the insured or insured's employees sues the business for damages due to an injury sustained in business premises. This means that the injured party must first suffer an injury on your premises, and then must make a claim for the damages they suffered. Product Liability includes liability protection for business completed products or services. Similar coverage is provided under the term 'completed operations' such as operations of many contractors in the event that they cause damages to others in the course of their service rendering. Professional service businesses such as physicians, lawyers, real estate brokers, and insurance agents have special professional liability coverages. For more information about Haftpflichtversicherung visit our website.