What types of damages are covered in liability insurance?

Liability insurance covers a wide range of damages in Washington. Generally, it covers damages resulting from injuries to persons, damage to property, or financial losses that result from negligence or other wrongful action. Injury damages may include pain and suffering, mental anguish, medical bills, and lost wages resulting from the injury. Property damage might include the cost for repairing or replacing the property damaged and any additional costs, such as lost rental income or lost business income. Financial losses may include the cost of legal fees, court costs, and damage to reputations. The most common type of liability insurance is general liability insurance. This covers a wide range of risks, such as errors and omissions, which may include misrepresentation or negligent action. Professional liability insurance is often purchased to cover risks related to specific professions, such as malpractice insurance for physicians and lawyers. Specifically, this type of insurance covers damages caused by professional negligence, errors, or omissions. Some liability policies may also cover punitive damages, which are damages imposed on the insured party to make an example of them and to serve as a warning to others. In Washington, punitive damage awards are subject to state cap limits. In addition to damages, liability insurance may also cover the cost of defending the insured person in a lawsuit, as well as pay for settlements agreed to with the plaintiff.

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What types of damages are covered in liability insurance?

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