What is liability insurance?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, such a line of financial business as liability insurance is becoming more and more important. At the same time, most consumers purchase a policy only for property types or enter into contracts for personal accident insurance.

Why do you need liability insurance?

Currently, more and more businessmen and heads of firms use liability insurance. Each participant in the production process or road traffic, air or sea transportation and other business processes in their activities may cause damage to third parties. Insurance contracts cover material losses that a client of the company may suffer as a result of the event for which the policy was purchased.

Liability insurance is also associated with the possible infliction of moral damages that a third party could suffer as a result of illegal or irresponsible actions of members of the team of the relevant organization. A distinction should be made between compensation for suffering and personal injury. Compensation fordamage to he alth and additional expenses incurred refer to the damage caused to the person.

In addition to these types of losses, under insurance contracts they can compensate for losses that are not directly related to an accident. So, in the event of the death of the victim during an emergency on the road, the costs of burial, the survivor's pension are reimbursed to the heirs who were not directly involved in the accident.

Liability: the main types of insurance

Given the current realities and market requirements, based on the current legislative acts of our country, the categories of civil liability insurance in voluntary and mandatory form are now clearly defined:

• owners of motor vehicles or OSAGO;
• owners of air and water space, trains;
• organizations and enterprises that use dangerous objects in their activities;
• for causing damage if the purchased products, services rendered, the work performed turned out to be of poor quality and with a manufacturing defect;
• for causing damages as a result of causing harm to other participants;
• for non-compliance, non-fulfillment or poor-quality fulfillment of agreements or work undertaken under the signed document.

Responsibility of transport owners

The most common type of compulsory liability insurance is autocitizen. To date, statisticsconfirms the fact that more people die in road traffic accidents than in plane or train crashes. Cars are the most dangerous means of transportation, as their collisions cause damage to the car itself, passengers and other property (houses, poles, road fenders). In order to reduce the damage received for the owners, there is an agreement on compulsory insurance of civil liability of vehicle owners. The owner or driver of a car, motorcycle, bus, as well as a trailer must have an OSAGO policy with him. If an accident on the road occurred through his fault, the insurance organization will reimburse the affected participants (people or legal entity) the amount of damage received or compensate for the cost of treatment, rehabilitation, burial. Contracts are concluded by capable citizens, enterprises, societies, corporations, holdings, organizations of various types of ownership. The responsibility of the profile company arises in case of traffic accidents. Regardless of the number of damaged cars and injured people, the insurer will compensate for the amount of losses incurred.

It should be noted that the obligations of a financial institution apply to all road users. The responsible company covers the amount of actual material damage. However, there are situations when the sum insured is not enough to fully compensate for the losses incurred (very expensive car repairs). In such cases, it is desirable to havean additional policy of obligations of the owner of the vehicle, concluded with the insurer already in a voluntary form.

Dangerous objects as the subject of insurance

Currently, there is a well-defined concept of "dangerous objects" in order to protect yourself from possible loss through the contract. These include coal and ore mines, oil platforms, metallurgical plants, gasoline and gas stations, warehouses with fuels and lubricants, chemical industry enterprises and industries that produce explosives. The owners of all such companies are required to have a compulsory liability insurance agreement for the owners of hazardous facilities. According to such a document, as a result of an accident or damage, affected people and owners of damaged or destroyed property will be able to receive monetary compensation.

Delivery Responsibility

One of the types of material protection is the conclusion of civil liability insurance contracts for cargo holdings and freight forwarders. In this line of business, the owner transfers possible property losses to the financial company if the property interests or he alth of other participants are harmed during the transportation or delivery of the goods. The events that may occur include the total or partial loss of cargo, its damage. You can also insure liability for a delay in the delivery of goods, which entailed financial losses. Exceptproperty, this type of protection can take care of the life and he alth of passengers.

Compensation for pollution damages

Recently, more and more man-made accidents have begun to appear, as a result of which damage is done to nature. In order to minimize such losses, professional organizations offer legal entities and individuals to purchase civil liability insurance contracts for the damage that they can cause to the surroundings, he alth and life of people as a result of their production activities. Payment of financial compensation is carried out by a court decision for damage caused directly to property or well-being of people. If the loss resulted from accidental damage to equipment or leakage of harmful substances, as well as an accidental error of the insured's personnel, this is also considered a contractual accident.

Responsibility of medical professionals

Clients of financial companies are increasingly consulted on the purchase of a product that would protect their professional activities in the event of unintentional errors. One of the voluntary agreements in this area is civil liability insurance of medical institutions and doctors. The agreement can be concluded both by specialized centers, state clinics, maternity hospitals, and private doctors who act on the basis of a license. The liability of the insurer occurs if the client has harmed the he alth of patientsmedical institution as a result of an incorrect diagnosis, any complications during treatment, infection with a disease in honey. procedures and other possible unforeseen complications.

Responsibility of dog owners

Pet owners often resort to the services of specialized companies to insure the life and he alth of their pets. Many professionals offer to use their products and additionally conclude a civil liability insurance contract for dog owners. The main condition for signing the agreement is the official registration of the animal. This type of insurance document will help the owner of the dog if the pet attacks a person and injures him. The monetary compensation specified in the contract will be directed by the insurance company to reimburse the costs of treatment. Also, the presence of such a document will reduce the cost of legal costs and compensate for the cost of property damaged by the animal.

Hunters and gun owners

The owners of guns and hunting dogs are required to buy an insurance contract. According to such documents, the profile company is held liable for causing damage to property or people's lives when using officially registered weapons and ammunition for them. Very often accidents occur during hunting, during which the he alth of third parties is damaged, as well as their property interests. Insurancehunters' civil liability refers to a complex type, according to which a professional company insures a gun as an object, the life of a hunter, as well as liability to third parties. After all, hunting dogs can additionally injure or cause serious injury to other participants in the hunt and to unauthorized persons, up to death. Such incidents are also an event for which the insurance company will be obliged to compensate for material losses.

Tour operators

When insuring the civil liability of a travel company, a financial organization undertakes to pay monetary compensation if a loss has been incurred as a result of incomplete or insufficient fulfillment by the organizer of obligations for the planned trip. Such events can be unintentional omissions in the preparation of documents for departure, the absence of booked rooms in a paid hotel, unpaid tours or travel documents.

In addition to the listed types, companies that operate in the financial market offer liability insurance for sports boat owners, homeowners and land owners.