Business Owner's Worker's Comp and Liability Insurance
Many individuals and businesses buy property and liability insurance to protect their assets against financial loss. Property insurance provides direct compensation if the policyholder’s possessions are damaged as a result of human action. Property insurance policies limit the amount of compensation for losses. Nearly all policies have a deductible amount or excess for which the policyholder is liable. The sum the policyholder can recover also is limited by the face value of the policy.
Many policies restrict compensation to the actual cash value of the property. Liability insurance protects individuals and business against possible financial losses if their actions result in bodily injury to others or if it harms the property owned by others. A victim of such action could sue the person or business responsible. Liability insurance pay for these damages and a policyholder’s defense cost. Many liability cases are settled out of court. Liability insurance thus indirectly protects a policyholder’s assets.