What Lawsuits Will Liability Insurance NOT Protect You From?

May 24, 2022

While no one anticipates being taken to court, the reality is that anyone can end up facing a lawsuit. It’s not uncommon for personal injury victims to sue people responsible for their injuries and seek compensation. If you’re sued for causing injuries or property damage, having personal liability insurance can protect you from losing your hard-earned assets.

While personal liability insurance covers a plethora of events caused by your negligence, it doesn’t cover everything. Having the proper coverage may protect you and your loved ones from suffering life-altering financial losses.

What Exactly Is Personal Liability Insurance?

Personal liability insurance provides coverage in case someone other than an immediate family gets injured on your property or has their property damaged by a member of your household. The coverage extends to everyone in the household, including children. For instance, if your child accidently damages an expensive item belonging to a friend, your liability insurance may pay for it.

Typically, a homeowners insurance policy will pay up to $100,000 to an injured person per single occurrence. However, there are higher limits available if you feel you need enhanced coverage.

Most standard homeowners and renters policies include personal liability insurance but it’s a good idea to double check your policy to ensure you’re properly covered.

Why Is It Important to Have Personal Liability Insurance?

Fundamentally, having personal liability insurance protects you from losing your assets. Unfortunately, the more you have, the more you’re at risk of losing. For instance, if you have a substantial sum of money in a savings account, you may have to spend the money on lawyers and a subsequent settlement. You can also lose personal assets, like your home and vehicles or have your wages garnished, if you or a family member is liable for injuries or property damage.

Personal liability insurance protects your assets and your future, allowing you to provide for yourself and your loved ones.

What Does Personal Liability Insurance Cover?

Personal liability insurance typically pays for medical, legal and repair expenses associated with the plaintiff’s injuries or property damage. It can also help you cover costs associated with a lawsuit since the insurance company will defend itself and you as the policyholder. There are numerous scenarios that could lead to a lawsuit, but some of the more common ones include:

  • Your dog bites a guest or a neighbor
  • Your child destroys someone else’s property
  • A guest is injured in your pool
  • Your teenage child starts a fire at a friend’s house
  • Your child’s babysitter trips on poorly installed carpet and falls
  • A mail carrier slips and falls on your slippery walkway
  • A dead tree falls onto your neighbor’s roof
  • Your dog jumps over a neighbor’s fence and causes damage to their backyard

What Is Not Covered by Personal Liability Insurance?

If you’re driving and cause an accident, your homeowners liability insurance will not cover any damages or injuries you caused to others. These are covered by an auto insurance policy, which all Georgia drivers are legally required to have.

Does Personal Liability Insurance Cover My Business?

If you’re a business owner, personal liability insurance will not shield your business from liability. To protect you and your business against lawsuits from customers, vendors or competitors, you’ll need a commercial general liability policy. This type of coverage can be purchased as part of your business insurance policy or as a stand-alone policy. General liability insurance typically covers your company from claims involving:

  • Physical injuries, such as slip and falls, injuries from falling objects, etc.
  • Property damage, like a carport collapsing and causing damage to a customer’s vehicle
  • Personal injury, such as libel or slander

It’s important to note general liability insurance doesn’t cover employee injuries stemming from accidents at work. This type of coverage can only be obtained through workers’ compensation insurance.

Dressie Law Firm Helps Atlanta Personal Injury Victims Get the Compensation They Deserve

Have you been hurt because of someone else’s poor judgment or poorly maintained home?

If you’ve endured injuries and expensive medical costs due to someone else’s negligence, you have the legal right to hold them liable for your damages.

Our dedicated attorneys and staff members are here to help you navigate your personal injury case and get the compensation you need to recover and move on with your life.

For a free case evaluation, call 678-909-1639.