If you own your own home, chances are good that you’ve taken out homeowners liability insurance on it. In many jurisdictions, this step is required by law. Likewise, most business owners use commercial liability insurance to protect their investments and insulate themselves from claims. While such insurance policies are designed to insulate homeowners and business owners from the financial costs associated with physical damage, liability claims and other issues, they’re not intended to absolve them of responsibility for negligent or intentionally harmful actions. If you’re thinking about filing a liability claim against a homeowner or business owner, take a moment to review the basic differences between homeowners liability and commercial liability. Homeowners Liability Insurance Basics Homeowners insurance comes in two basic parts: property and liability. While we could easily devote an entire article to property insurance issues, homeowners liability insurance is fairly straightforward. This guarantee protects homeowners from financial damages associated with injuries, deaths or damages that occur in their homes or on their properties. Liability claims against homeowners often occur after falls that result in severe injuries, or after on-site machinery accidents that can’t be blamed on defective products. Commercial Liability Insurance Basics Commercial or business liability insurance tends to be far more broad in scope. In addition to the physical structures in which the covered entity conducts its affairs, most commercial liability plans cover claims and damages associated with the products and services that it offers. If you file a claim against a business that makes a defective or harmful product, it’s quite likely that its commercial liability plan will cover the cost of any judgment that arises out of the case. Key Differences There are some obvious differences between homeowners liability and commercial liability. Whereas homeowners tend to be held liable for a narrower range of problems, businesses can be faulted for a variety of indirect problems that can be traced back to their products or services. However, business owners often evade personal responsibility for such issues. Any judgment that you stand to receive as a result of a commercial liability claim is likely to come out of the at-fault business’s asset pool. How Do You Know Who’s at Fault? In some cases, it may be difficult to determine the identity of an at-fault party. If you were injured on a residential property that doubles as a business site, the sequence of events that led up to the incident could prove to be consequential. You’d do well to speak to a liability expert before proceeding. If you still have some questions about the differences between homeowners liability and commercial liability, or aren’t sure how to determine the identity of the at-fault party in your specific case, turn to the seasoned liability experts at the law firm of Boteler, Finley and Wolfe in Mobile, AL. To learn more about the services that our firm’s seasoned attorneys can provide, visit us online or call 866-975-7766.