Definition

Covers damages you might cause to someone else’s property. It protects your finances from the cost of repairs or replacements.

What to consider

  • Review liability limits carefully.
  • Understand the types of incidents covered.
  • Consider umbrella policies for extra protection.

Real world scenarios

  • An auto policy included accident liability to cover damages if the driver caused injury to others.
  • A small business obtained accident liability insurance to protect against onsite injuries.
  • An individual added accident liability coverage for peace of mind during high-risk activities.

Related terms

Insurance & Financial Protection