What is liability insurance - a summary
Liability insurance helps the company if an accident or error occurs which leads to the company receiving a compensation claim. Liability insurance can help the company with investigation and negotiation, as well as lawyers who handle the case for you. Furthermore, liability insurance covers the payment of any claim. The insurance applies for property damages and personal injury claims.
Example 1: Claims as a result of an accident
You own a store and have just washed the floor when a customer enters and slips on the wet floor. If the customer is injured, the company may be liable for the damage. Such damage can be costly if the customer requests compensation.
Example 2: Claims against a real estate agent
You work as a real estate agent and write incorrectly in the sales prospectus that an apartment comes with a parking space. This did not turn out to be the case. The loss this entails is covered by the professional liability insurance.