What does liability insurance cover exactly? This question is crucial for individuals and businesses alike, as understanding the scope of liability coverage can significantly impact financial security. Liability insurance acts as a crucial safety net, protecting you from the potentially devastating financial consequences of accidents or incidents that cause bodily injury or property damage to others. This comprehensive guide will explore the various types of liability insurance, detailing what each covers and how it can safeguard your future.
We will delve into the specifics of general liability, professional liability, product liability, and umbrella liability insurance, highlighting their key differences and applications. We’ll also examine common exclusions and the claims process, providing you with a clear understanding of what to expect should you need to file a claim. By the end, you’ll have a firm grasp of how liability insurance works and its importance in mitigating risk.
Types of Liability Insurance
Liability insurance protects individuals and businesses from financial losses arising from claims of bodily injury, property damage, or other forms of harm caused by their actions or negligence. Understanding the different types of liability insurance is crucial for selecting the appropriate coverage to mitigate potential risks. This section will explore several key types, providing examples of their application.
General Liability Insurance
General liability insurance is a foundational type of liability coverage for businesses. It protects against claims of bodily injury or property damage caused by the business’s operations, products, or employees. For example, if a customer slips and falls on a wet floor in a store, general liability insurance would typically cover the resulting medical expenses and potential legal costs.
Another example would be if a company’s employee accidentally damages a client’s property while working on-site. This type of insurance also often includes coverage for advertising injury, such as libel or slander.
Professional Liability Insurance (Errors and Omissions Insurance)
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects professionals from claims of negligence or mistakes in their professional services. This is particularly important for professionals like doctors, lawyers, accountants, and consultants. For instance, if a doctor makes a diagnostic error that leads to further complications for a patient, their professional liability insurance could cover the resulting medical expenses and legal fees associated with a malpractice lawsuit.
Similarly, an accountant who makes an error in preparing a client’s tax return could be protected by E&O insurance.
Product Liability Insurance
Product liability insurance protects manufacturers, distributors, and sellers from claims of injury or damage caused by defective products. If a company manufactures a faulty product that causes harm to a consumer, this insurance would cover the costs associated with legal defense and compensation to the injured party. For example, if a toy manufacturer produces a toy with a small, detachable part that a child swallows, resulting in a medical emergency, the manufacturer’s product liability insurance would likely cover the costs associated with the incident.
Comparison of Liability Insurance Types
| Type of Liability Insurance | Covered Claims | Examples of Situations | Typical Insured Parties |
|---|---|---|---|
| General Liability | Bodily injury, property damage, advertising injury | Slip and fall on business premises, property damage caused by employee, libelous statement in advertising | Businesses, property owners |
| Professional Liability (Errors & Omissions) | Negligence or mistakes in professional services | Doctor’s misdiagnosis, accountant’s error in tax preparation, lawyer’s legal malpractice | Doctors, lawyers, accountants, consultants, other professionals |
| Product Liability | Injury or damage caused by defective products | Faulty toy causing injury, defective appliance causing fire, contaminated food causing illness | Manufacturers, distributors, retailers |
What is Covered Under General Liability Insurance?: What Does Liability Insurance Cover Exactly
General liability insurance is a crucial component of risk management for businesses and individuals. It provides financial protection against claims of bodily injury or property damage caused by the insured’s negligence. This coverage is broad, encompassing a wide range of potential incidents, offering peace of mind knowing that unexpected liabilities are financially covered. Understanding what constitutes coverage is key to maximizing the benefits of this type of policy.General liability insurance policies typically cover a range of common incidents.
These incidents often involve accidents or occurrences on the insured’s premises, during the course of their business operations, or stemming from their products or services. This can include slips and falls on a business’s property, damage caused by a malfunctioning product, or injuries sustained during a service provided by the insured. The specifics of coverage vary depending on the policy and its endorsements, but the core principle remains consistent: protection against financial liability arising from accidental injury or damage caused by the insured.
Bodily Injury Coverage
Bodily injury coverage under a general liability policy protects the insured against claims resulting from physical harm to another person. This includes medical expenses, lost wages, pain and suffering, and other related costs. The coverage extends to injuries sustained on the insured’s premises, during the course of business operations, or as a result of the insured’s products or services. For instance, if a customer slips and falls in a store and suffers a broken leg, the general liability policy would cover the medical expenses, lost wages, and potential legal costs associated with the claim.
The policy’s limits of liability will determine the maximum amount the insurer will pay for these claims.
Property Damage Coverage
Property damage coverage protects the insured against claims for damage to another person’s property. This could encompass damage caused by the insured’s negligence, their employees’ actions, or even by their products. For example, if a contractor accidentally damages a client’s property while working on a renovation project, the general liability insurance would cover the cost of repairs or replacement.
Similarly, if a defective product manufactured by a company causes damage to a customer’s property, the general liability policy would help to compensate for the losses. This coverage often includes the cost of repairing or replacing the damaged property, as well as any consequential losses incurred as a result of the damage.
Scenario: General Liability Insurance Compensation
Imagine a small bakery, “Sweet Surrender,” hosting a weekend tasting event. A customer trips over a carelessly placed display stand, falls, and breaks their arm. The customer incurs significant medical expenses and loses wages due to their injury. They decide to sue Sweet Surrender for negligence. Sweet Surrender’s general liability insurance policy would cover the costs associated with the customer’s medical bills, lost wages, and legal defense.
The insurer would investigate the claim, negotiate a settlement, or defend Sweet Surrender in court, depending on the circumstances. The policy’s limits of liability would determine the maximum amount the insurer would pay out to settle the claim. This scenario clearly illustrates how general liability insurance provides critical financial protection against unforeseen incidents and potential lawsuits.
Professional Liability Insurance (Errors and Omissions)
Professional liability insurance, often called errors and omissions (E&O) insurance, is a crucial type of coverage for professionals who provide services to clients. It protects against financial losses arising from claims of negligence, mistakes, or omissions in the performance of professional duties. This insurance is distinct from general liability insurance, which covers bodily injury or property damage caused by the insured’s actions.
Understanding the nuances of professional liability insurance is essential for professionals to safeguard their businesses and personal assets.Professional liability insurance safeguards professionals against the financial consequences of claims alleging professional negligence or errors in their services. Unlike general liability, which addresses physical harm or property damage, professional liability focuses on financial losses resulting from professional mistakes. This could include missed deadlines, inaccurate advice, faulty designs, or breaches of professional duty.
The cost of defending against such claims, including legal fees and potential settlements, can be substantial, making professional liability insurance a vital component of risk management.
Situations Requiring Professional Liability Insurance
Professional liability insurance is particularly important in situations where a professional’s actions or inactions could result in significant financial losses for their clients. For example, a financial advisor who provides incorrect investment advice could face a lawsuit from a client who suffers financial losses as a result. Similarly, an architect who designs a building with structural flaws could be sued for the costs associated with repairing or rebuilding the structure.
These scenarios highlight the potential for substantial financial liability, underscoring the need for robust professional liability coverage.
Differences Between General Liability and Professional Liability Insurance
General liability insurance covers bodily injury or property damage caused by the insured’s actions or omissions. For example, a slip and fall on a business’s premises would be covered under general liability. In contrast, professional liability insurance covers financial losses resulting from errors or omissions in professional services. A doctor misdiagnosing a patient, leading to further medical expenses, would fall under professional liability.
The key difference lies in the nature of the claim: general liability deals with physical harm or property damage, while professional liability addresses financial losses stemming from professional negligence or mistakes.
Professionals Typically Needing Professional Liability Insurance
The need for professional liability insurance is widespread across numerous professions. The potential for errors and omissions, and the resulting financial consequences, makes it a vital protection.
- Doctors and other healthcare providers
- Lawyers and other legal professionals
- Architects and engineers
- Financial advisors and investment managers
- Accountants and auditors
- Real estate agents and brokers
- Insurance agents and brokers
- Consultants (various fields)
- Software developers
This list is not exhaustive, and many other professions could benefit from the protection offered by professional liability insurance. The decision to obtain such coverage should be based on a careful assessment of the potential risks associated with the profession and the potential for significant financial liability.
Product Liability Insurance
Product liability insurance protects businesses from financial losses resulting from injuries or damages caused by their products. This crucial coverage safeguards companies against lawsuits stemming from defective products, inadequate warnings, or improper product design. It’s a vital component of risk management for any business that manufactures, distributes, or sells products.Product liability insurance covers a broad range of potential liabilities.
This includes compensation for medical expenses, lost wages, property damage, and legal defense costs associated with product-related claims. The policy typically covers bodily injury and property damage caused by a defective product, regardless of whether the defect was due to negligence, strict liability, or breach of warranty. The specific coverage details vary depending on the policy and the insurer, so careful review of the policy wording is essential.
Situations Invoking Product Liability Insurance
Product liability insurance becomes necessary in various scenarios involving product defects that cause harm. For instance, a manufacturer of children’s toys might face a claim if a toy’s small parts detach and cause a child to choke. Similarly, a food producer could be sued if their product contains harmful contaminants leading to illness. A pharmaceutical company might face liability if a drug causes unexpected and harmful side effects.
In each of these cases, the injured party could sue the manufacturer, distributor, or retailer for damages, making product liability insurance crucial for financial protection. Other examples include faulty electronics causing fires, defective car parts resulting in accidents, and malfunctioning medical devices leading to patient harm.
Case Study: Successful Product Liability Claim
Imagine a company, “Acme Tools,” manufactures power drills. A defect in the drill’s safety mechanism resulted in a user, Mr. Jones, suffering a serious hand injury during use. Mr. Jones sued Acme Tools for negligence and product liability.
Acme Tools, possessing a comprehensive product liability insurance policy, reported the incident to their insurer. The insurer assigned legal counsel to defend Acme Tools and negotiated with Mr. Jones’s legal team. After thorough investigation and negotiation, the insurer settled the claim for $250,000, covering Mr. Jones’s medical expenses, lost wages, pain and suffering, and legal fees incurred by Acme Tools.
This successful claim demonstrates the crucial role of product liability insurance in protecting businesses from significant financial losses arising from product-related incidents. The policy not only covered the settlement but also the legal costs associated with defending the lawsuit, preventing a potentially devastating financial burden on Acme Tools.
Umbrella Liability Insurance
Umbrella liability insurance provides an additional layer of protection beyond the limits of your existing liability insurance policies, such as auto and homeowner’s insurance. It acts as a safety net, offering significantly higher coverage amounts should you be found legally responsible for a significant accident or incident. This type of insurance is designed to safeguard your assets and financial well-being in the event of a catastrophic liability claim.Umbrella liability insurance supplements your primary liability policies by extending the coverage limits.
If a claim exceeds the limits of your underlying policies (like your auto or homeowner’s insurance), your umbrella policy steps in to cover the remaining costs. It also often covers certain types of liability not included in your primary policies, broadening your overall protection. This makes it a valuable tool for individuals and businesses seeking comprehensive liability protection.
Umbrella Liability Insurance Compared to Other Liability Coverages
Umbrella liability insurance differs from other liability coverages primarily in its scope and coverage limits. While general liability, professional liability, and product liability insurance address specific types of liability, umbrella insurance acts as a blanket policy covering a wider range of liabilities and providing significantly higher coverage limits. For instance, your homeowner’s policy might have a $300,000 liability limit, while an umbrella policy could add millions more in coverage.
This difference is crucial when considering the potential costs associated with serious accidents or lawsuits. The cost of umbrella insurance is generally quite affordable compared to the substantial protection it offers.
A Hypothetical Scenario Illustrating the Necessity of Umbrella Liability Insurance
Imagine you’re driving your car and accidentally cause a multi-vehicle accident resulting in serious injuries and significant property damage. Your auto insurance policy has a liability limit of $100,000, but the total medical bills and property damage claims exceed this amount by a significant margin, reaching $2 million. Without umbrella liability insurance, you would be personally responsible for the remaining $1.9 million.
This could lead to the loss of your home, savings, and other assets. However, with a $1 million umbrella liability policy in place, the additional coverage would help offset the excess costs, protecting your financial future.
Exclusions in Liability Insurance Policies
Liability insurance policies, while designed to protect you from financial losses due to covered incidents, are not all-encompassing. They contain exclusions, specific circumstances or types of claims that the policy explicitly does not cover. Understanding these exclusions is crucial for policyholders to accurately assess their level of protection and avoid unpleasant surprises during a claim. Ignoring these exclusions can have significant financial implications.It is important to carefully review your policy’s specific wording, as exclusions can vary significantly between insurers and policy types.
However, several common exclusions are found in most liability insurance policies. These exclusions are designed to manage risk and prevent the insurer from covering situations deemed too unpredictable, intentional, or otherwise outside the scope of typical insurable events.
Common Exclusions in Liability Insurance Policies
Many common exclusions relate to intentional acts, illegal activities, and situations where the insured party is held responsible for damage caused by their own negligence or recklessness. For instance, most policies exclude coverage for bodily injury or property damage intentionally caused by the insured. This is a fundamental principle of insurance; it’s designed to prevent individuals from profiting from their own wrongdoing.
Furthermore, many policies exclude coverage for damage caused by pollution, unless specifically added as an endorsement. This is often a separate and costly addition to a policy.
Implications of Exclusions for Policyholders
The implications of these exclusions can be severe for policyholders. If a claim arises from an excluded event, the policyholder will be entirely responsible for all associated costs, including legal fees, settlements, and judgments. This could lead to significant financial hardship, potentially jeopardizing personal assets and financial stability. For example, a business owner whose policy excludes pollution-related damages might face bankruptcy if a chemical spill causes environmental contamination.
Similarly, an individual who intentionally harms someone would not be covered under their liability policy.
Impact of Exclusions on Claims Processing
Exclusions significantly affect the claims processing timeline and outcome. When a claim is filed, the insurer’s first step is to determine whether the incident falls under the policy’s coverage. If the incident falls under an exclusion, the claim will likely be denied. This denial can lead to disputes and potentially lengthy legal battles, adding further financial and emotional stress on the policyholder.
The insurer’s investigation will focus on identifying whether the cause of the incident is excluded from coverage. A clear understanding of the policy’s exclusions before an incident occurs is vital to avoid such complications.
The Claims Process for Liability Insurance
Filing a liability insurance claim can seem daunting, but understanding the process can alleviate stress and ensure a smoother experience. This section details the steps involved, the role of the insurance adjuster, and provides a visual representation of the typical claim process. Remember, specific procedures may vary slightly depending on your insurance provider and the specifics of your claim.The claims process generally involves several key steps, from initial reporting to final settlement.
Prompt and accurate reporting is crucial for a timely resolution. Maintaining thorough records throughout the process is also highly recommended.
Reporting the Incident
The first step is to promptly report the incident to your insurance company. This usually involves contacting them by phone or through their online portal. Provide all relevant details, including the date, time, location, and circumstances of the incident. Accurate and complete information at this stage is vital for efficient claim processing. Be sure to obtain a claim number for future reference.
Investigation and Assessment
Following the initial report, the insurance company will begin an investigation. This may involve reviewing police reports, medical records (if injuries are involved), and witness statements. An insurance adjuster, a trained professional who evaluates claims, will be assigned to your case. Their role is to assess the validity of the claim, determine liability, and estimate the damages.
The Role of the Insurance Adjuster, What does liability insurance cover exactly
The insurance adjuster plays a central role in the claims process. They are responsible for gathering information, interviewing witnesses, reviewing documentation, and ultimately determining the amount of compensation the insurance company will pay. They will communicate with you throughout the process, keeping you updated on the progress of your claim. Open and honest communication with your adjuster is essential for a successful outcome.
Adjusters work to fairly evaluate claims while considering the terms and conditions of your insurance policy.
Negotiation and Settlement
Once the investigation is complete, the adjuster will present their findings and propose a settlement amount. This may involve negotiations between you and the adjuster. It’s important to understand your rights and to be prepared to negotiate a fair settlement. If you are dissatisfied with the initial offer, you may have the option to appeal the decision or seek legal counsel.
Payment of Claim
Upon reaching a settlement agreement, the insurance company will process the payment. This may be made directly to you or to the injured party, depending on the specifics of the claim. The payment may cover medical expenses, property damage, lost wages, and other relevant costs.
Flowchart of the Liability Insurance Claims Process
The following describes a flowchart visually representing the typical steps in a liability insurance claim:[Imagine a flowchart here. The flowchart would begin with a box labeled “Incident Occurs.” This would lead to a box labeled “Report Incident to Insurer.” This would branch to two boxes: “Investigation Begins” and “Claim Number Assigned.” “Investigation Begins” would lead to a box labeled “Adjuster Assigned.” This would lead to a box labeled “Assessment of Liability and Damages.” This would lead to a box labeled “Negotiation and Settlement Offer.” This would branch to two boxes: “Settlement Accepted” and “Settlement Rejected/Appeal.” “Settlement Accepted” would lead to a box labeled “Payment of Claim.” “Settlement Rejected/Appeal” would lead to a box labeled “Further Negotiation/Legal Action.” All boxes would be connected with arrows indicating the flow of the process.]
Factors Affecting Liability Insurance Premiums
Understanding the factors that influence your liability insurance premiums is crucial for securing adequate coverage at a manageable cost. Several key elements contribute to the final premium calculation, reflecting the insurer’s assessment of your risk profile. A thorough understanding of these factors can empower you to make informed decisions about your insurance needs and potentially lower your premiums.Several interconnected factors determine the cost of liability insurance premiums.
These factors are carefully considered by insurance companies during their risk assessment process, which directly impacts the premium calculation. This process aims to accurately reflect the likelihood and potential severity of claims against the insured party.
Risk Assessment and Premium Calculation
Insurance companies employ sophisticated risk assessment models to evaluate the likelihood of claims and the potential severity of losses. This assessment considers various factors specific to the insured, their business operations (if applicable), and the nature of the potential risks. The higher the perceived risk, the higher the premium. For example, a high-risk business operating in a hazardous environment will typically pay significantly more than a low-risk business in a safer setting.
The assessment includes both quantitative data (e.g., past claims history, number of employees) and qualitative factors (e.g., safety procedures, management experience). The outcome of this analysis directly informs the premium calculation, ensuring that the premium accurately reflects the insurer’s exposure.
Factors Influencing Liability Insurance Premiums
The following table summarizes key factors that affect liability insurance premiums. Understanding these factors can help businesses and individuals make informed decisions about their coverage and potentially reduce their premiums.
| Factor | Description | Impact on Premium | Example |
|---|---|---|---|
| Claim History | Past claims filed against the insured. | Higher frequency or severity of past claims leads to higher premiums. | A business with multiple prior liability claims will likely face higher premiums than a business with a clean record. |
| Industry and Occupation | The inherent risks associated with the insured’s industry or profession. | Higher-risk industries (e.g., construction, healthcare) generally have higher premiums. | A construction company will typically pay more than a retail store due to the higher inherent risks associated with construction work. |
| Location | Geographic location, crime rates, and natural disaster risk. | Higher-risk locations lead to higher premiums. | A business located in an area with high crime rates may face higher premiums than one in a safer area. |
| Business Size and Revenue | For businesses, size and revenue often correlate with risk exposure. | Larger businesses or those with higher revenue often pay higher premiums due to greater potential liabilities. | A large corporation will typically pay a higher premium than a small sole proprietorship. |
| Safety Measures and Risk Management | Implementation of safety protocols and risk management strategies. | Strong safety programs can lead to lower premiums. | A business with comprehensive safety training programs and robust risk management procedures may qualify for discounts. |
| Coverage Limits | The maximum amount the insurer will pay for a covered claim. | Higher coverage limits lead to higher premiums. | Choosing a higher policy limit will result in a higher premium, but offers greater protection. |
| Deductible | The amount the insured pays out-of-pocket before the insurer starts paying. | Higher deductibles generally lead to lower premiums. | Choosing a higher deductible will reduce the premium, but the insured will bear more of the cost in the event of a claim. |
Importance of Adequate Liability Coverage
Securing adequate liability insurance is not merely a prudent financial decision; it’s a critical safeguard against potentially devastating financial consequences. The peace of mind it provides is invaluable, knowing that a significant unforeseen event won’t lead to crippling debt or the loss of personal assets. Understanding the potential ramifications of insufficient coverage is paramount to making informed decisions about your insurance needs.The financial consequences of inadequate liability insurance can be severe, ranging from substantial out-of-pocket expenses to bankruptcy.
A single lawsuit, particularly one involving significant bodily injury or property damage, can easily exceed the limits of a low-coverage policy. This shortfall would leave the policyholder responsible for paying the difference, a burden that could quickly deplete savings, necessitate the sale of assets, or even result in personal bankruptcy. The stress and emotional toll associated with such financial hardship are considerable, adding another layer of difficulty to an already challenging situation.
Financial Consequences of Inadequate Coverage
Insufficient liability insurance coverage can lead to a variety of significant personal losses. Consider a scenario where a homeowner’s dog bites a neighbor, causing serious injuries requiring extensive medical treatment and ongoing physical therapy. If the homeowner’s liability insurance policy has a low limit, the costs associated with medical bills, lost wages for the injured party, and legal fees could far exceed the policy’s coverage.
The homeowner would then be personally liable for the remaining amount, potentially facing financial ruin. Similarly, a business owner with inadequate professional liability insurance could face ruin if a client sues them for professional negligence. The costs of defending the lawsuit and paying a potential settlement could easily bankrupt a small business.
Illustrative Scenario: The Case of the Landscaper
Imagine Sarah, a self-employed landscaper, who operates her business without adequate liability insurance. While working on a client’s property, she accidentally damages a valuable piece of garden statuary, causing significant damage. The client, understandably upset, sues Sarah for the cost of repair or replacement. Without sufficient liability insurance, Sarah is personally responsible for covering the cost, which could easily amount to thousands of dollars.
This unexpected expense could force her to close her business, jeopardizing her livelihood and potentially leading to significant personal debt. Had Sarah secured appropriate liability coverage, her insurance company would have handled the claim, mitigating the financial risk and preserving her business and personal financial stability. This illustrates the crucial role of adequate liability insurance in protecting both personal and professional assets.
Liability Insurance and Business Operations
Liability insurance plays a crucial role in safeguarding businesses from the potentially devastating financial and reputational consequences of lawsuits. A single lawsuit, regardless of its merit, can drain a company’s resources and severely impact its future prospects. Comprehensive liability coverage acts as a critical buffer, providing financial protection and allowing businesses to focus on their core operations rather than protracted legal battles.Liability insurance protects businesses from a wide range of potential claims, including those arising from bodily injury, property damage, advertising injury, and professional negligence.
The specific types of liability insurance needed will vary greatly depending on the nature and size of the business. For example, a small retail store will have different insurance needs than a large construction company or a medical practice. Understanding these nuances is essential for securing adequate protection.
Types of Liability Insurance Relevant to Various Business Types
The selection of appropriate liability insurance is directly tied to a business’s specific operations and risk profile. A comprehensive approach often involves a combination of policies tailored to address the unique challenges faced by each industry. For instance, a restaurant will require general liability to cover customer injuries, but might also benefit from liquor liability insurance if it serves alcohol.
A technology firm, on the other hand, might prioritize professional liability insurance (errors and omissions) to protect against claims related to faulty software or negligent advice. A manufacturing company would likely need product liability insurance to cover claims stemming from defective products. This illustrates the need for a customized approach to liability insurance based on individual business needs.
Examples of Liability Insurance Protecting Business Assets and Reputation
Consider a small bakery. A customer slips on a wet floor and suffers a broken leg. General liability insurance would cover the medical expenses, legal fees, and potential settlement costs associated with the lawsuit. Without insurance, the bakery could face financial ruin. Similarly, a software company that releases a product with a critical bug causing significant financial losses to its clients might face a substantial lawsuit.
Professional liability (errors and omissions) insurance would protect the company from these claims, preserving its financial stability and reputation. In both cases, liability insurance not only protects the business’s financial assets but also shields its reputation from negative publicity and damage to its brand image, allowing it to continue operations without interruption.
Concluding Remarks
In conclusion, understanding what liability insurance covers exactly is paramount for both personal and professional protection. From the everyday risks covered by general liability to the specialized needs addressed by professional and product liability insurance, a comprehensive policy can provide significant financial security. Remember to carefully review your policy’s exclusions and understand the claims process. By taking the time to secure adequate liability coverage, you’re investing in peace of mind and protecting yourself against unforeseen circumstances.
The knowledge gained here empowers you to make informed decisions about your insurance needs, ultimately safeguarding your financial well-being.
FAQ Compilation
What is the difference between general liability and professional liability insurance?
General liability covers bodily injury or property damage caused by your business operations, while professional liability (errors and omissions insurance) protects against claims of negligence or mistakes in your professional services.
How much liability insurance do I need?
The amount of liability insurance needed depends on several factors, including your assets, income, and the level of risk associated with your activities. Consult with an insurance professional to determine the appropriate coverage amount for your specific circumstances.
Can I file a claim if I’m partially at fault?
Most liability insurance policies cover claims even if you are partially at fault, but the payout may be reduced depending on the specifics of your policy and the degree of your responsibility.
What happens if my liability insurance claim is denied?
If your claim is denied, you have the right to appeal the decision. You should carefully review the reasons for denial and gather any supporting documentation to strengthen your appeal.