LIABILITY INSURANCE

How much liability insurance do you need?

Determining the appropriate amount of liability insurance coverage can vary depending on the state’s legal requirements. Generally, bodily injury liability and property damage liability are the typical requirements in most states. Experts in auto insurance recommend a minimum coverage of 100/300/100, which translates to $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident, and $100,000 in property damage liability per accident.

In Mississippi, all drivers are legally required to maintain liability insurance with a minimum coverage of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. It is essential to carry proof of insurance in your vehicle at all times to comply with Mississippi law.

Fortunately, there are numerous insurance companies that offer liability coverage with different rates and incentives. We recommend reputable companies such as Nationwide, USAA, Farmers, State Farm, and Allstate. To learn more about their services, click on the suggested company links.

UI/UIM Insurance

Uninsured/underinsured motorist coverage (UI/UIM) is an additional coverage option that is highly recommended. This coverage protects you, your household members, or passengers in your vehicle in case of an accident with an uninsured or underinsured driver. It helps cover medical expenses and other accident-related costs. If an at-fault driver does not have sufficient insurance to cover all damages, underinsured motorist coverage can provide the necessary protection.

Being involved in a car accident caused by a driver without liability insurance can result in out-of-pocket expenses. Uninsured motorist coverage on your regular auto insurance policy can protect you from paying for damages caused by another driver’s negligence. It is particularly crucial if the at-fault driver does not have liability insurance, adequate coverage for medical bills, or if their insurance company denies coverage or goes out of business.

Different types of liability insurance

As stated before, there are several different forms of liability insurance. Although, most individuals think of automobile insurance when referring to liability coverage.

Among the different types of liability insurance, there is employer’s liability and worker’s compensation, product liability, indemnity insurance, director and officer liability coverage, umbrella liability, commercial liability, and comprehensive general liability. This section will attempt to explain more about other types of liability insurance like Employer’s liability and workers’ compensation, for example.

Liabilities of many forms can subject a business owner’s assets to substantial claims. Furthermore, having an asset protection plan that is built around available liability insurance coverage should be a top priority for all business owners.

For protection against liabilities resulting from injuries or death of an employee, employer’s liability and workers’ compensation is mandatory coverage for employers. However, employer’s liability and workers’ compensation are not the only two types of coverage for businesses.

Business that manufacture products for sale on general markets can deal with lawsuits resulting from a defective product. If a business has product liability insurance, they can protect the company against lawsuits resulting from injury or death caused by their products.

Coverage provided by indemnity insurance can protect a business from negligence claim on account of financial harm resulting from errors or failure to perform. If a company is to be sued, director and officer liability coverage can protect a company’s board of directors.

Additionally, another form of liability insurance, known as umbrella liability, is a policy for personal liability that protects against devastating losses. For example, when another insurance policy reaches its limit, umbrella liability coverage picks up the slack.

This type of policy is supplemental liability or additional liability insurance that covers beyond the dollar limitations of an individual’s existing auto, watercraft, or homeowner insurance. In addition, umbrella policies typically offer increments of $500,000 or $1 million at surprisingly affordable rates.

Insurance coverage for lawsuits resulting from injury to employees and the public, injuries resulting from other employees’ negligence, and property damage caused by an employee is called commercial liability. This type of insurance coverage is a standard commercial general liability or comprehensive general liability.

However, commercial general liability may also cover infringement on intellectual property, slander, libel, contractual liability, tenant liability, and employment practices liability. Liability insurance policies that are designed for any particular type of business are comprehensive general liability.

This policy covers any small or large business, corporations, associations, organizations, newly obtained businesses, and partnership businesses. Comprehensive general liability covers areas such as bodily injury, property damage, personal and advertising injury, premises and operations liability, and payments.