Liability and Insurance

Liability and insurance (take a look at the ultimate authorititive site, the pii hub) go together like a hermit crab and its shell. Liability is similar to the crab while insurance is like the shell. Just as the hermit crab relies on its shell for protection, those with liabilities rely upon insurance for protection. Most hermit crabs frequently need to change shells and other forms of protection, due to growth and extenuating circumstances. Businesses and individuals also need to change their insurance and other forms of protection due to growth and extenuating circumstances.

Individuals and businesses cannot avoid acquiring liabilities as they grow and interact with the rest of the world. After all, the term liability basically means legal responsibility. This usually refers to the legal responsibility to pay for any harm or damages caused by the person or business. Normally, liability specifically refers to the harm or damage caused by a sudden, unexpected accident due to someone’s negligence. However, it can also refer to the harm or damage caused gradually through someone’s negligence, omissions, and errors. Since no one is perfect, everyone has the potential to cause this type of harm and damage.

Insurance provides mobility protection

Just as the hermit crab’s shell protects it against the perils of mobility, Motor Liability insurance provides protection against the mobility risks for people. It makes it easier for drivers to afford to pay for any injuries, deaths, or property damage caused by road traffic accidents. And there are numerous mobility risks for people.

Statistics have revealed that a driver is likely to have at least one accident within the first five years of being licensed. On an average day, a road traffic accident occurs about every two minutes, if not more frequently. According to 2008 statistics, 8.7 people die per day in the UK due to road traffic accidents. However, not every accident leads to a fatal death. Most accidents just result in injuries or property damage, or a combination of injury and property damage. Due to the high rate of motor vehicle accidents, Third Party motor liability insurance is compulsory in the UK.

Insurance permits business growth

A hermit crab’s shell also provides a safer environment for growth in a world filled with predators and competition. The business world is also filled with potential predators and competition. Having insurance covers permit the business to grow and expand by permitting it to take bigger risks than could be easily undertaken otherwise.

For instance, having Employers’ Liability permits a person to form a business that employs other people. Due to the high rate of work-related accidents, Employers’ Liability is compulsory for most employers, so having a large business is legally impossible without it. However, many non-mandatory types of insurances also help to provide this safer business environment.

Public and Product Liability covers allow a firm to safely offer more services and products to the general public. Having Professional Indemnity or Tradesman Liability opens more opportunities to gain income, as these are frequently pre-conditions of employment in certain types of professions. Moreover, Directors’ & Officers’ Liability covers make it simpler to attain and retain better qualified company board members.

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