What do you understand by the term " Liability Insurance" and where does it use and why?

General Liability Insurance also called Commercial General Liability Insurance is an insurance policy that pays for a small business's legal expenses when it is sued by non-employees.

Lawsuits covered by General Liability Insurance usually include property damage, bodily injury, slip-and-fall accidents, slander, libel, copyright infringement, product liability, and more.

General Liability Insurance does NOT cover lawsuits alleging professional negligence (those are covered by Errors and Omissions Insurance).

Construction projects typically involve two primary types of risk: damage to the property, and third-party claims of injury or damage. Which is normally covered under Contractors’ All Risks (CAR) insurance policy.

But typically to cover any damage, or cost overrun due to faulty design or construction by the consultant or contractor we should incorporate clause of "Liability insurance" in the contract agreement. Most of the time it is limited to 10% of the contract value.

actual insurance liability

Agreed with Zulfiqar answer -------------------------

Liability insurance is any insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. ... Intentional damage except contractual liabilities 

Liability insurance is any insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence.

Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable.

i hope it helps

http://www.investopedia.com/terms/l/liability_insurance.asp

ihave  eperience  25years in middle easte   for general construction  and

road works  also about the safety  peoples  e t c

yhank you

Thank you for the invitation

Liability 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. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy. Originally, individual companies that faced a common peril, formed a group and created a self-help fund out of which to pay compensation should any member incur loss (in other words, a mutual insurance arrangement). The modern system relies on dedicated carriers, usually for-profit, to offer protection against specified perils in consideration of a premium.

Liability insurance is designed to offer specific protection against third party insurance claims, i.e., payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies. When a claim is made,[1] the insurance carrier has the duty (and right) to defend the insured. The legal costs of a defence normally do not affect policy limits unless the policy expressly states otherwise; this default rule is useful because defence costs tend to soar when cases go to trial. In many cases, the defense portion of the policy is actually more valuable than the insurance, as in complicated cases, the cost of defending the case might be more than the amount being claimed, especially in so-called "nuisance" cases where there is no liability but the case has to be defended anyway.

May I agreed with Mr. @Arvind Arya , but also It might be a % of the project value to be retained as a reserved guarantee value, and could be released after the warranty period of the project, to ensure that all liabilities met the contract specifications, terms & conditions.

The insurance is important is not the Senate or resources such as Business Companies or cars, insurance umbrella to take the burden away from what he s provide monitors