Civil liability insurance is a type of policy that is purchased to provide coverage for provisions under civil law. Civil liability insurance policies are available in countries such as England and are purchased by various clubs, sports teams and professionals. A policy will pay for damages that result from the conduct of the insured and claims made against an insured while a policy is in force. This includes civil liability claims that occur as the result of any professional activities.
Civil liability insurance contains protection from many types of liability, such as public liability, product liability and professional indemnity. Public liability includes damage to property that arises out of activities by a group or organisation. Product liability includes injury or damage that results from a product that was sold. Professional indemnity includes errors and omissions such as giving bad advice or failing to act when appropriate.
Types of Claims
Coverage for many types of claims is provided by civil liability insurance that has been purchased by a business or group. One type of claim includes injury sustained by a third party that is the result of faulty equipment. Another type of claim is when an individual has been injured when following instructions or advice. Claims can also occur when cattle escape and cause injury when a landowner's gate has been left open.
Coverages that are provided by a civil liability insurance policy are contained in the civil liability section of the policy. This includes the type of liability that is covered and what types of damages are paid by the policy. Damages include claims that result from business or insured activities and claims that are made under civil law unless otherwise excluded on the policy. Coverage is also provided for any legal costs that occur.
Types of Liability
Civil liability insurance includes liability that can occur to a third party or is the result of an insured's actions. Liability can occur as the result of injury that has been sustained by any person or third party and his property. Other occurrences of liability involve trespassing and nuisance. Actions of an insured can include slander or libel that was not intentional and occurring from advice or coaching provided by a professional.
Insurers that provide civil liability insurance typically have many exclusions that are included on a policy. Exclusions on a policy can include any prior knowledge that could result in a claim and any claims made by the employees of a business. Other exclusions include acts that are committed deliberately by the insured and claims from an organisation that is controlled by the policyholder.