Liability

Liability

responsibility under the law

Insured Contract

A definition on liability forms that describes the types of contracts in which liability is assumed by the insured and included for coverage in the policy. Examples of insured contracts are leases of premises, elevator maintenance agreements, easement agreements, and other agreements related to the insured's business.

Strict Liability

A liability that refers to damages caused by defective products even though the manufacturer's fault or negligence cannot be proven.

Legal Liability

A liability under the law that occurs when a person is responsible for injuries or damages to another due to negligence.

Combined Single

A single dollar limit applying to the total of damages for bodily injury and property damage combined, resulting from one accident or occurrence.

Vicarious Liability

A type of liability in which one person is responsible for the acts of another. For example, employers may be vicariously liable for the actions of their employees, and parents may be held responsible for negligent acts of their children.

Absolute Liability

A type of liability that occurs due to extremely dangerous operations, such as the use of explosives or working at extreme heights.

Complaint

A written statement of a liability claim given by the claimant; a reason for a lawsuit.

Tort

A wrongful act or the violation of someone's rights that leads to legal liability. Torts are classified as intentional or unintentional (referred to as negligence).

Umbrella Liability Policy

Coverage that provides extra protection against liability, and excess amount of insurance above the primary policy.

Bodily Injury Liability

Legal liability arising from death or physical trauma to a person as a result of a negligent or purposeful act and omissions by an insured.

Property Damage Liability

Legal liability arising from physical damage to tangible property of others caused by the negligence of an insured.

Personal Injury Liability

Legal responsibility for an injury to the character of another person caused by libel, slander, false arrest, invasion of privacy and other acts.

Limit of Liability

The maximum amount for which an insurer is liable.

Aggregate Limit

The maximum limit of coverage available under a liability policy during a policy year regardless of the number of claims that may be made or the number of accidents that may occur.

Split

separately stated limits of liability for different coverages, which may be stated on a per person, per occurrence, per policy period basis, or can be divided between bodily injury and property damage

Settlement

the process by which an agreement is reached and a claim is resolved in liability insurance