Liability Flashcards

1
Q

Liability

A

When a third party seeks financial compensation as a result of your actions

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2
Q

What triggers a liability claim

A

A tore act from a breach of duty of care

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3
Q

What does liability insurance cover and who

A

It covers the cost of somebody suing you, they cant claim off the insurance.

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4
Q

What percent of liability claims involve insurance

A

94-96%

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5
Q

Types of liability insurance (4/7)

A
  • Commercial general liability
  • General third party liability
  • Employer liability
  • Employer practices liability
  • Profesional llibility
  • Product liability
  • Third party motor liability
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6
Q

Umbrella policies

A

Policies that cover all types of policies

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7
Q

CGL

A

Covers your liability to the public

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8
Q

GTPL

A

General third party liability, Covers your exposure to the public

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9
Q

EPL

A

Employment practices liability: Your responsibility as an employer under law eg, sexual harassment, discrimination

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10
Q

Loss occurring policies

A

Event happens in the period of insurance but can be claimed for years later

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11
Q

Example of loss occurring policy

A

Building built 15 years later collapses after 15 years, the professional indemnity insurance in place then covered it.

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12
Q

Claims made policies

A

A claim made during the policy despite when the event occurred

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13
Q

Where would you see claims made policies?

A

Profesional indeminity

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14
Q

What type of liability policy would you have long-tail risk and how is the combated

A

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

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15
Q

What are the two steps in assessing a liability claim

A
  1. Does the peril fall into the policy

2. Is there a breach of liability and is the insured negligently?

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16
Q

State of the art defence

A

To the best of scientific knowledge at the time, we did not know this was unsafe.

17
Q

Process of investigating a liability claim

A
  1. Insure policy overs the risk
  2. Investigation of loss assessors and loss adjustor
  3. Apply the law - it is hard to say if you will win or lose
  4. Negotiate or defend
18
Q

Tort rights

A

Bodily harm, economic harm, psychological harm, privacy/defamation, pursue legitimate commercial interests

19
Q

What are the 2 elements of duty of care?

A
  1. Reasonable foreseeability: could the accident have been prevented
  2. Nambour principal - proximity between the parties in the event and who is most responsible
20
Q

Statutory liability, why is the not usually covered by insurance

A

Breach of law, would breach public policy and as a result, there would be no payout

21
Q

How are insurance settlements calculated?

A

Cost and variability of court

22
Q

Volenti non fit injuria

A

To volunteer injuries, such as rugby or boxing

23
Q

Discuss a waiver and liability claims.

A

A waiver is not a waiver of suing, it is a waiver that you admit you may get hurt. It does not abandon your duty of care

24
Q

Statutory authority or permit defence

A

You have a licence to do so, you can not be sued for such.

25
Self-defence
Must be a reasonable response met with reasonable action. If the person is going to rob your wallet you can not kill them as that is not reasonable.
26
Inivertabel accident
The accident was going to happen regardless of what the client did
27
When does the insurer indemnify for an Act of god / force misure
The insurer indemnifies the client against acts of god but not when the client is being sued for acts of god
28
What damages does a liability policy indemnify you against?
Special damages, general damages, legal damages, punitive damages
29
Special damages
Expences the injury incurred eg medical expenses
30
General damages
Pain and suffering comes from the tort right to psychiatric well being
31
Punitive damages
Punishments
32
Condition of the insurer being able to conduct proceeding on behalf of the insured
Insured can admit liability on behalf of the insurer
33
The obligation of the insured to take reasonable precautions
Eg have fire extinguishers