More Facts on Liability Insurance

Liability insurance is an insurance that protect the purchaser or customer from liability that is demanded by law prosecution or other things that are similar to it. This kind of insurance is commonly used by a person or company who is at the peak of bankruptcy. Mostly, those companies or people would create a mutual insurance agreement.
Liability insurance provides compensation and a duty in defending. The duty in defending will occur when the accused or the customer is sued. The insurance company may stop their defending efforts, however it can do either defending the claim or hand it over to an outside law firm. The duty of giving compensation means that the insurance company must pay the entire amount that is charged against the customer. However in some area, there is third duty that is to clear the matter with the customer so that the customer is free from law charge or compensation.
There are two types of liability insurance there are public liability insurance and general liability insurance. Public liability insurance is divided into product liability which covers all kind of products including agricultural product. While the other one, employer liability is referred to employers who owns some capital in a company. The general liability insurance includes insurance for physical injury and property damage.