Liability insurance

1. There are several types of liability insurance policies:
a) Public liability
b) Worker's compensation
c) Product liabilty
d) Professional liability

2. The motor insurance policy provides third party liabilty cover. If the owner drives carelessly and caused an accident, the third party can claim for compensation for the repair of the vehicle or for injuries.

3. The home insurance policy provides third party liability cover. If an accident occurs in your home due to a unsafe cnditon, the injured person can claim for compensation. This will be paid under the policy.

4. An employer is required to buy worker's compensation insurance to cover injuries to their employees that occurs in the course of work. This insurance will pay the employee for medical expenses and loss of wages.

5. A product manufacturer has to product liability insurance to cover claims from customers who are injured by defects in your product.

6. A lawyer, doctor, accountant or other professional may be sued for compensation for losses to the client caused by neglect of duty or wrong advice. This will be covered under a professional indemnity insurance.