Liability coverage limits for different types of vehicles are usually represented by three numbers, e.g., liability insurance is an insurance product that provides protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover all legal costs and payments that the insured party is responsible for if considered legally responsible. Intentional damage and contractual liabilities are usually not covered by liability insurance policies. Property damage liability coverage is insurance that pays for damage you cause to other people's property, including vehicles, in a covered accident.
Personal injury liability insurance usually covers the costs associated with injuries you've caused to other people, up to the limit of your policy, in a covered accident. On the contrary, business liability insurance protects the financial interests of companies and business owners against lawsuits or damages resulting from similar accidents, but it also covers product defects, recalls, etc. Neither you nor anyone involved in a car accident should have to pay a deductible for a liability insurance claim. Liability coverage provides important protection to drivers, and most states require drivers to have a minimum amount of liability insurance.
For example, most states require vehicle owners to have liability insurance in their auto insurance policies to cover injuries to other people and property in the event of accidents. All business owners must have an asset protection plan that is based on available liability insurance coverage. Business owners are exposed to a range of liabilities, any of which can subject their assets to substantial claims. Nearly every state requires at least some liability coverage (or proof that you have enough cash to pay for the damage yourself).
However, liability insurance for cars isn't always simple, and determining how much you need can be a challenge. Personal liability insurance covers individuals against claims that result from injuries or damage to other people or property suffered on the insured's property or as a result of the insured's actions. Personal liability insurance policies are primarily purchased by people with high net worth (HNWI) or people with significant assets, but this type of coverage is recommended for anyone with a net worth that exceeds the combined coverage limits of other personal insurance policies, such as home and auto coverage. Your local independent agent or a Travelers representative can help you understand your state's requirements and select the amount of liability coverage that's right for you.
However, retroactive liability insurance is insurance that covers a claim that occurred before the purchase of the insurance policy. Auto liability insurance pays only up to the maximum amounts, or “limits,” specified in your policy.
