Liability Insurance

General Liability Policy
Responsibility for harm or loss that might be incurred to property or health and livelihood of third parties as a result of using hazardous objects or controlling these objects (for example, means of transportation).
Responsibility can also be related to inadvertent legal violations or contract liability violations.

What is Liability Insurance?
  The civil responsibility before the third parties (natural person and legal entity) which may suffer from losses (property damage) due to the Insured’s action or inactivity is a subject of insurable interest.
The Insurance Agreement on the general responsibility protects the Insured from material losses which he may incur due to damage repayment claims caused by the third party. The obligatory insurance of the responsibility associated with any activity potentially dangerous to a society is applied as well.
  In this case, the insurant is totally free to choose the right insurance company for the purpose of compulsory insurance. Avoidance of entry into the agreement of responsibility mandatory insurance implies a criminal liability.
  The obligatory insurance of the liability of car drivers before the third parties is also involved because exactly road accidents can have serious consequences from the point of view of material damage infliction. The principle of financial compensation of the damage caused to the injured party (repair of the broken vehicle, medical costs of the accident victims, compensation of the salary loss including temporary or permanent until pension, in case of infliction of a mutilation, social rehabilitation expenses and service to the invalid) is taken as a basis of the responsibility calculation.
  Another kind of obligatory insurance of the liability is the insurance of the entrepreneur liability before hired workers. An employer is responsible for providing his workers and personnel with a safe working environment.

  Liability insurance can be divided into three types:
• Public liability insurance – third party liability insurance such as: the motor vehicle drivers, employers to employed, air carriers, ship owners
• Professional liability insurance – for the following professions: doctor, accountant, lawyer, architect, collector, engineer, etc. The aim of this type of insurance is to cover liability for causing property damage resulting from erroneous operations of listed professions’ representatives
• Product liability insurance – liability of product manufacturers to its consumers if the consumer has suffered property damage due to a poor quality of a product consumed.

Under the contract of liability insurance the assuror enters into an obligation to compensate the damage to the third party in the part, in which the liability on this damage is brought upon the assuror in the result of the actions falling under the insurance coverage. Thus, the assuror is entered into an obligation to defend the interests of the insurant, proving non-participation of the latter in this event or covering damages he is liable for.

General liability insurance is liability insurance of house-owners and coverage of general liability:
• insurance against risks that could be covered by other agreements
• insurance of liability of automobile owners, entrepreneurs against work hands
• aircraft and marine liability insurance
• insurance of professional liability
• risks covered by agreements of property insurance
• no insurable risks, such as losses caused by deliberate actions, nuclear and military risks.

Most of the contracts of general liability insurance also excludes coverage of third parties property damage if the property was under care, guard or was temporarily stored at the in the insured’s place at the moment of the insured event.
 Through the liability insurance contract the insured receives assurance that the insurance company will protect him in case of a law action against him. Some policies provide reimbursement of medical expenses. Such a coverage may be provided in addition to the basic coverage. The costs of emergency medical care, as well as possible future medical expenses of the injured party are to be reimbursed.
 Sometimes the mere fact of providing liability insurance coverage is more important than insurance benefit. If there is a reliable insurance coverage the court may decide in favor of the insured or award to compensate a plaintiff a lower amount compared to what the insured would have paid without insurance coverage. All legal costs and additional expenses are covered under a liability insurance contract.