As a responsible person, you know you need insurance for your car, home, and yourself. However, while some liability insurance is required by law, others are optional. To fully understand these policies, learn more about how they work, what they cover, and why coverage is vital for you and your loved ones below.

A Brief Explanation of Liability Insurance

What is liability insurance?

The three main kinds of liability insurance—business, personal, and auto—are all typically add-ons to comprehensive policies. Each type will provide insurance coverage in case there's a claim against you or your business in the event of damage to property, bodily injury, or personal injury.

What does it cover?

Liability insurance covers a wide variety of factors in many situations. Most policies include coverage for present and future assets, defense costs in the event of a lawsuit, and damages caused by you or others under your plan, including children and pets. If someone is hurt on your property, their medical expenses will also be covered.

Which liability insurance is required by law?

In the state of Texas, drivers are required to have a minimum amount of liability insurance. This applies to both commercial drivers and those who are driving for personal reasons. The minimum includes $30,000 in bodily injury coverage for each injured person and $25,000 in property damage coverage per accident.

On the other hand, in Florida, drivers must have at least $10,000 in personal injury protection, which covers 80% of all medical expenses from a covered injury, and $10,000 in property damage liability, which pays for damage to another driver's vehicle. Registered taxis must have at least $50,000 in property damage liability, in addition to $125,000 in bodily injury liability per person and $250,000 per accident.

Who needs coverage?

While car liability insurance is essential, other types of liability insurance can also save you from significant fines, lawsuits, and stresses down the line. For example, business liability insurance will protect you if someone sues for a personal injury that takes place on your property. Likewise, if you're a renter in a condo or apartment, personal liability could protect you from being held responsible for a fire that occurs in your room without you present. If you're not sure what kinds of liability insurance you need, speak with a trusted agent.

If you’re ready to purchase insurance to protect you, your home, or your business, contact America’s Favorite Insurance & Tax. They offer professional services to clients from their offices in Pompano Beach, FL, and San Antonio, TX, to ensure all their clients are fully covered. Call today at (972) 662-8221 to ask about their options, or learn more about their insurance providers on their website.