Liability insurance (also called third-party insurance) is a part of the general insurance system of risk financing to protect the purchaser (the “insured”) from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.

Liability insurance is designed to offer specific protection against third-party insurance claims, payment is made to someone suffering loss who is not a party to the insurance contract. When a claim is made, the insurance carrier has the duty (and right) to defend the insured.

There are several types of liability insurance:

• Public liability insurance
• Product liability insurance
• Professional liability insurance for consultant, design and supervision contractors
• Professional liability insurance for lawyers, notaries, and brokers
• Professional liability insurance for doctors, security staff
• War risk and related perils insurance
• Employer’s liability insurance; D&O
• Liability insurance for golf course owner