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?
State of the art defence
To the best of scientific knowledge at the time, we did not know this was unsafe.
Process of investigating a liability claim
- Insure policy overs the risk
- Investigation of loss assessors and loss adjustor
- Apply the law - it is hard to say if you will win or lose
- Negotiate or defend
Tort rights
Bodily harm, economic harm, psychological harm, privacy/defamation, pursue legitimate commercial interests
What are the 2 elements of duty of care?
- Reasonable foreseeability: could the accident have been prevented
- Nambour principal - proximity between the parties in the event and who is most responsible
Statutory liability, why is the not usually covered by insurance
Breach of law, would breach public policy and as a result, there would be no payout
How are insurance settlements calculated?
Cost and variability of court
Volenti non fit injuria
To volunteer injuries, such as rugby or boxing
Discuss a waiver and liability claims.
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
Statutory authority or permit defence
You have a licence to do so, you can not be sued for such.
