Property and Liability Insurance Research Paper

Property and Liability Insurance - Research Paper Example When the risk event occurs and a claim is made, the insurance company has to cover the claim. The main objective of taking a property and liability insurance is to cover one’s own property from various risks including theft, fire, accident, electric circuitry damages, lighting, etc, but to also cover third parties such as employees, visitors, general public, etc (Economy Watch, 2010). PLI provides for 3 major duties from the insurance company, namely, duty to defend, duty to indemnify and duty to address a reasonable clear claim. The duty to defend arises when the insured party is sued and claims a liability from the insurance company. The insurance company when it receives a claim from the third party may either choose to defend the insured, seek a declaratory judgment of no coverage or choose either. The second duty the insurer has is to indemnify the insured to what the insurance company is liable. The third duty the insurance company has is to settle all the reasonable cla ims and often if the insurer fails to settle the amount for within the claim limit, the insured can take the insurance company to court and claim beyond the set amount. ... Employment liability (or workman’s compensation) is a form of insurance that should be mandatorily taken by all the businesses and is meant to protect the employer from all risk events that may occur to the employees whilst they perform their duties. Tenant’s liability – Tenants that stay in the insurer place are covered for abilities by the owner from risks that may be present in the rented place. General liability – Covers the business, the employee’s third parties, etc, from risks including the risk to business. Professional liability is a form of liability that is taken by a professional such as a physician, lawyer or dentist, and would cover to pay for damages to any third party that may have been caused whilst provision of professional services. The main intention of professional liability is to protect the professional from malpractice claims. Professionals need to take a higher level of care whilst providing their services. D & O Liability o r Directors and Officers liability is a form of insurance that aims to cover the actions of the directors and officers of a company. It can be used to limit the damage to the company that may be caused by the actions of the directors or the officers (Economy Watch 2010). Insurance Fraud is any act that is committed by one party in order to obtain insurance money from the insurer fraudulently. The extent of fraud may vary from one case to another and include, claiming larger than expected insurance damages, deliberately causing accident and damages with the intent of causing losses to the insurance company or increasing the premium that is offered to the insured (Total Criminal Defense, 2010). Today insurance