Liability Flashcards
Liability
When a third party seeks financial compensation as a result of your actions
What triggers a liability claim
A tore act from a breach of duty of care
What does liability insurance cover and who
It covers the cost of somebody suing you, they cant claim off the insurance.
What percent of liability claims involve insurance
94-96%
Types of liability insurance (4/7)
- Commercial general liability
- General third party liability
- Employer liability
- Employer practices liability
- Profesional llibility
- Product liability
- Third party motor liability
Umbrella policies
Policies that cover all types of policies
CGL
Covers your liability to the public
GTPL
General third party liability, Covers your exposure to the public
EPL
Employment practices liability: Your responsibility as an employer under law eg, sexual harassment, discrimination
Loss occurring policies
Event happens in the period of insurance but can be claimed for years later
Example of loss occurring policy
Building built 15 years later collapses after 15 years, the professional indemnity insurance in place then covered it.
Claims made policies
A claim made during the policy despite when the event occurred
Where would you see claims made policies?
Profesional indeminity
What type of liability policy would you have long-tail risk and how is the combated
Claims made policies, as a result, they have 2-year retroactive clause and it is asked in the proposal form what you have done in the past
What are the two steps in assessing a liability claim
- Does the peril fall into the policy
2. Is there a breach of liability and is the insured negligently?
