Example: AJ's Accident
AJ learned early in life that prevention is better than a cure. The day he accidentally set fire to the lodge he was staying in at the Pocono Mountains in the US would have been the end of him if he didn't have travel liability insurance. The candle that AJ forgot to put out when he went to bed resulted in the lodge burning down and the injury of 2 other patrons. AJ was faced with a lawsuit that his personal liability travel insurance covered.
Expenses that AJ faced
Cost for destroyed cabin: $100,000
Medical expenses and hospital stay for people affected by fire: $100,000
Total lawsuit amount: $230,000 (miscellaneous expenses and lawyer fees included)
Amount covered by AJ's insurer
$230,000
Out-of-pocket expense
$200 excess
* This is a fictional, but realistic, example.