Liability insurance insures people against the risks they face from damage done to third persons as a result of their acts or omissions. It does not insure the building where an accident may occur; it insures the liability of the person who owns the building. It is a method to spread the risk of loss resulting from the acts of an individual or corporation. Like property insurance, liability insurance creates a personal relationship between the insurer and the insured.
The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library.
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