Unlock Hidden Truths Liability Insurance's Negligence Cover Explained

The Core of Negligence Cover

Negligence occurs when an individual or entity fails to exercise reasonable care, resulting in damage or injury to another party. Liability insurance's negligence cover comes into play by covering legal fees, settlements, and any awarded damages up to the policy limit. This aspect of liability insurance is indispensable, especially in today's litigious society where lawsuits are increasingly common. For instance, a small business owner could face a costly lawsuit if a customer slips and falls due to a wet floor in their store. With negligence cover, the business owner would be protected from bearing the full financial burden.