Professional liability insurance provides financial protection against lawsuits related to one’s profession. It obligates an insurance company to defend and pay a judgment up to a fixed policy amount. It is commonly sold to doctors, lawyers, architects, and engineers. The insurance company must pay an attorney to defend the insured against the claim and pay […]
Third party liability insurance protects against financial loss from lawsuits by injured parties. It’s required for auto insurance and can be included in homeowners and renters policies. Businesses may have multiple types of liability insurance to protect against various losses. Third party liability insurance protects the insured against financial loss due to a lawsuit by […]
Accrued liability is a debt that has not yet been recorded in the accounts payable ledger. Liabilities refer to debts and obligations that a company has, and are subtracted from assets to determine the company’s value. Accrued liabilities can be recurring or non-recurring costs, and can remain on a balance sheet until they are paid […]
Garage liability insurance protects auto service centers from liability claims resulting from faulty repair work, employee discrimination claims, and customer injuries. It is different from garage maintenance insurance, which covers damage to customers’ vehicles. Garage liability insurance is a type of liability coverage purchased by companies that operate some type of auto service center. Garages, […]
Market trader liability insurance has different meanings in different countries. In the UK, it refers to physical markets and protects against litigation related to injuries or product liability. In the US, it would be called small business liability insurance or broker public liability insurance. Business owners can obtain policies through insurance brokers or providers. Market […]
Deferred liability is a debt that is not paid immediately but is due in the future, including deferred tax liability. It is recorded in accounting books to provide a complete financial picture and allows for sustainable debt repayment. Deferred liability refers to a debt that is incurred and that a person or entity does not […]
Responsibility accounting is an internal system that holds individual managers accountable for elements of a company’s performance they can control. Departments are classified into cost, revenue, profit, or investment centers, and managers are judged on how well they meet set goals. It is not reflected in a company’s public accounts. Responsibility accounting is an internal […]
