Property Damage Liability Insurance: Who needs it?
We all make mistakes – mistakes that can sometimes cause accidents that damage other people’s property or cause another person bodily harm.
For instances like these, property damage liability insurance coverage includes damage done to vehicles, public property, private homes, businesses and individuals up to a selected amount chosen by you, the consumer. Should it be needed, this type of coverage also covers any legal defence fees if legal counsel is needed as a result of damages caused.
Who needs coverage?
In most places everybody is required by law to hold this type of insurance. If you happen to have a filing on your commercial automobile insurance policy, you are than required to retain Property Damage Liability coverage.
Limits and other particulars
With this type of coverage, limits must be selected. If you happen to choose a limit of £10,000, your Property Damage Insurance would cover up to £10,000 for all of the damage you caused to the property. Your coverage may also consist of a combined single limit, which in most cases will be a number that describes both the limits set on your Bodily Injury Liability and your Property Damage Liability coverage amounts.
So, if a combined single limit of £500,000 was set, the insurance company would pay up to £500,000 for all property damage caused as well as all bodily injury and medical related bills caused by the accident.
For example, let’s say, while backing out of a parking spot, you accidentally back into your neighbour's car, which is parked opposite you. Since you have opted to select a split limit for your insurance, the Property Damage portion of your insurance would pay to repair or replace your neighbour’s car up to your selected limit, which in this case, we will say is £10,000. The damage caused by this incident adds up to £500 so your insurance will fully cover this accident. If the damage had added up to £12,000, you would personally be responsible for covering the extra £2,000.
About Alan & Thomas Insurance
Alan & Thomas Insurance Group is a leading Chartered Insurance Broker that specialises in commercial insurance and we work closely with the UK's leading insurers to develop bespoke insurance products for our clients. We are listed in the top 100 independent insurance brokers in the UK and we are also a member of Brokerbility - a network of 37 independent insurance brokers giving us an extended reach across the UK. We are experts in risk management programmes for businesses and organisations, and provide guidance for a wide range of sectors including retail, leisure & hospitality, property, charity, farm and tradesmen.