Liability insurance is coverage you obtain to pay another person, if you cause them harm. For example: If I damage another persons car, I have property damage liability coverage to pay for repairs to their auto. If I cause damage to a neighbors home, apartment, or am accused of slander, my Personal Liability Coverage pays for those damages. If I am in business and cause damage to my client or their property, my General Liability coverage pays for those damages.
To determine the amount of coverage needed, you need to ask yourself how much you are willing and able to pay, if you cause injury to someone or damage to something. You also need to determine the amount of potential damage you could cause. We live in a country and society where you can be sued for just about anything. Deciding how much you have to risk will help you to determine the amount of coverage you want.
Please feel free to post to this blog with any questions.