Uncertainties in life have led to creation of the concept of insurance. Every human being likes to safeguard his interests and also that of his family. The insurance companies thus basically take up the function of safeguarding people from dangers and mishaps. This complex field of insurance is closely related to different domains of finance and laws, which makes insurance an even more complex domain of law.
What is Bodily Injury Liability
First, let us understand the meaning of liability. A liability, is basically any monetary amount that is payable to some other party. When it comes to physical injury liability, this amount becomes payable as a result of the orders of the court. The bodily injury can be any physical or even mental injury that has been inflected upon the injured party.
Sometimes the term 'personal injury' is also used as a synonym, to the concept of bodily injury. The cause of a bodily injury can be anything ranging from a small accident to physical assault or an auto accident to industrial disaster. Theoretically, any injury caused as a result of some other party's fault, becomes a valid ground for an injury liability suit.
Speaking in legal terms, an injured party is a plaintiff of such a case, who files a suit against the party at fault or rather the party due to whom the injury was caused. The party at fault is known as the defendant of the case. The plaintiff files the case due to the fact that without his fault, he has to go through some considerable pain and has to bear some unnecessary medical expenses.
f found guilty, the party at fault has to compensate some amount to the injured party. Such a compensation is referred as the injury liability. Depending upon the court's decision, the compensation amount may or may not include, all medical expenditures, compensation for pain, compensation for loss of salary, reimbursement of non-medial expenses, such as ambulance bills, etc. This compensation can be paid in two forms, namely, as a lump sum amount, or as a structured settlement.
Insurance against Bodily Injury Liability
Bodily injury claims have led to the development of such insurance policies. Business organizations who can be persistently sued for bodily injury, are the ones to avail these insurance policies. Ice skating rinks, amusement parks, logistic companies are some prominent examples. The injury liability clause is found in some other insurance policies such as auto insurance policies. The premium of such a policy is increased by a few dollars.
In fact some states recommended injury liability insurance clauses to be included in the auto insurance polices of some new drivers. Similarly, industrial companies also purchase these polices for their workmen. Accidents within the company premises are covered by such policies.
In the recent past when the injury liability insurance polices were introduced for the first time, these polices were denied to some specific business organizations such as hospitals and pharmaceutical companies. Nowadays, however, these polices are made available to such organizations, but with liability limits, that are respected by both insurance companies and insured parties.
Although the liability policy might sound almost unnecessary for common people like you and me, it is always advisable that one can club it with normal policies, such as auto insurance or health insurance.