What is liability insurance or BI coverage?

This is insurance coverage that is supposed to pay for injuries caused by negligent or careless people or businesses. If you’ve been in a wreck, the at fault driver’s liability insurance provides primary coverage. Incredibly, Colorado law only requires a $25,000 minimum policy for drivers. With the high costs of medical care and factoring in some wage losses and this is grossly inadequate for most cases. What happens if you are at fault and injure someone and have only a minimum policy? You might be on the hook personally for damages that exceed your liability policy. The same is true for the person that injured you or your family member. By having a larger policy you can protect your assets and future income from being collected or garnished in the event you caused significant injury to someone. ┬áCheck with your insurance agent. You might find that increasing your policy to at least $100,000 or preferably $300,000 is less than you think. Keep in mind that saving money on a minimum or low limit policy now might result in financial ruin later.