Page 28 - Insurance Times January 2018 Sample

Finally, liability losses may be classified according to whether Liability, Single Limit:
the amounts the firm must pay, or the revenue of which it Liability Insurance that imposes a single Policy limit on all
is deprived, arise from payment off damages or fines to an claims per occurrence, regardless of the mix off bodily injury
entity whose legal rights have been violated, payment of and property damage and the number of claims.
legal defence costs, or expenses incurred or revenues lost
because of the need to modify or cease a profitable activity.
Liability, Specific Exposures and Problems:
A business faces liability arising out of its property and
Liability Legal, Losses: activities. These sources of liability can be categorized as
That liability which courts recognize and enforce as between follows:
parties litigant. 1. Ownership, use, or possession of premises,
2. Activities that are considered to be a public or private
Liability Legal, Dram Shop Law: nuisance,
Liquor liability laws are called dram shop laws. They provide
3. Sale, manufacture and distribution of products or services.
that a person serving someone who is intoxicated or
4. Property of others in the care, custody or control of the
contributing to the intoxication of another person may be
liable for injury or damage caused by the intoxicated person. business.
Liability Legal, Employers: The common law or special 5. Fiduciary relationships such as the management of
statutory responsible of employers for job related injuries employee benefit plan assets or service on the firm's
and disease caused by their negligence but not covered Board of Directors.
under workmen's compensation. 6. Professional activities.
7. Vehicles - usually automobiles but may include aircraft,
Liability Legal, Joint and Several: watercraft and other vehicles.
Liability under which each off several joint wrong doers are 8. Employees who may suffer a job-related injury or
responsible either on a combined, undivided basis, or on an disease.
individual basis, for the full amount of damages for which 9. All property and activities not listed under any other
the several wrong doers are collectively responsible.
category.
Liability, No Fault: Liability, Strict:
Compulsory Public Liability Insurance: Section 3 of Public A legal doctrine under which a manufacture is held
liability Insurance Act, 1991 imposes a no fault liability on responsible for injuries arising out of defective products,
the person who owns or has control over handling any regardless of whether or not the manufacturer was
hazardous substance to give relief where death or injury negligent.
(including permanent total or permanent partial disability
of sickness) of any person (other than a workman within the Liability, Tort:
meaning of the workmen's compensation Act 1923) as A tort is a civil wrong other than breach of a contract for
amended or damage to any property, has resulted from an which the court will provide a remedy in the form of an
accident. No fault liability means that the claimant is not action for money damages: (i) Intentional torts: involving
required to prove that the death, injury or damage was due
conduct that may be intentional or by design (but not
to any wrongful act, neglect or default of any person.
necessarily with the intention that the resulting
consequences should occur): (ii) Unintentional torts:
Liability, Pro-rata: involving the failure to act or acting not as a reasonable
Liability on the part of an Insurer for not more than the prudent person would have acted under the similar
proportion of loss which the amount insured bears to the circumstances, and (iii) Wrongs: for which is business may
amount of all Insurance policies covering the loss. be held absolutely or strictly responsible, intent or fault is
not an issue under absolute or strict liability.
Liability, Protective Insurance:
Liability Insurance against claims which may arise out of the Liability, Vicarious:
insured's contingent liabilities for the conduct of others, such Employers 'liability' towards third parties for the acts of his
as independent contractors. servants. T

28 The Insurance Times, January 2018

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