Liability insurance is one of the most important components of risk financing within the general insurance structure. The origins of insurance coverage go back to a time when a group of individuals or business owners came together to form a body which would provide a protection cover in case any member of the body faced losses due to the result of a common peril that affected (or could affect) anyone in the group.
Across the world there are many countries that compulsorily require individuals or companies to have liability insurance as a form of protection in case they are sued for negligence. This is also referred to as third party insurance i.e. payment in event of damages is not made to the insured but rather the third party (who is not a part of the original contract) who has faced injury or loss.
A certificate of liability insurance sample is a document which is a proof that can be shown to another party demonstrating that there is a risk cover that ensures protection for certain types of losses. This kind of document is usually mandatory in cases where an independent contractor is providing services for an organization. This document contains information like the amount of coverage, the name of the insurance company, the expiry date of the policy and other relevant details.
It is advisable while doing business with a company (like purchasing products or services or sub-contracting work to a contractor who will wok within the client’s premises), that it be ascertained that the company is in a position to execute its obligations. This includes having worker’s compensation insurance as well a certificate liability insurance sample. Making sure that the company has such a certificate will be an important check on the coverage aspect as well as the validity of the same. It is important to check the amount of insurance as well so that it is sufficient to meet any losses that might incur in the course of the work. Not having a certificate liability insurance sample means that the client will have to bears all claims made in advent of any losses.
Typically liability insurance falls into three broad categories:
- Public Liability
- Product Liability
- Liability for Employers
CarInsuranceGenie.com can assist you with information on liability insurance as well as provide a certificate liability insurance sample guidance in order to see what it looks like.