Today, such a line of financial business as liability insurance is becoming increasingly important. At the same time, most consumers only purchase property insurance policies or enter into personal accident insurance contracts.
Why is liability insurance necessary?
Currently, an increasing number of businessmen and company executives enjoy liability insurance. Each participant in the production process or automobile traffic, air or sea transportation and other business processes in their activities may cause harm to third parties. Insurance contracts cover material losses that a company’s client may suffer as a result of an event in case of which a policy was purchased.
Liability insurance is also associated with the possible infliction of moral damages that a third party could suffer as a result of unlawful or irresponsible actions of the members of the collective of the corresponding organization. The payment for suffering and personal damage should be divided. Compensation for harm to health and the additional costs incurred relate to harm caused to the individual.
In addition to these types of losses, under insurance contracts they can compensate for losses that are not directly related to the accident. So, in the case of the death of the victim during an emergency on the road, burial expenses, a survivor's pension are reimbursed to heirs who did not directly participate in the accident.
Responsibility: main types of insurance
Given the current realities and requirements of the market, based on the current legislative acts of our country, the categories of liability insurance in voluntary and mandatory form are now clearly defined:
- owners of motor vehicles or OSAGO;
- owners of air and water space, trains;
- organizations and enterprises that use hazardous facilities in their activities;
- for damage if the purchased products, rendered services, the performed set of works turned out to be of poor quality and with a manufacturing flaw;
- for damages resulting from harm to other participants;
- for non-compliance, non-fulfillment or low-quality fulfillment of the agreements or work undertaken upon the signed document.
Responsibility of vehicle owners
The most common form of compulsory liability insurance is motor citizen. Today, statistics confirm the fact that more people die in road traffic events than in plane or train crashes. Automobiles are the most dangerous means of transportation, as their collisions cause damage to the cars themselves, passengers and other property (houses, poles, road bumpers). In order to reduce the damage received for owners there is a contract of compulsory insurance of civil liability of vehicle owners. The owner or driver of a car, motorcycle, bus, as well as a trailer is obliged to have an insurance policy. If an emergency on the road occurred due to his fault, the insurance company will reimburse the injured participants (people or a legal entity) the amount of damage received or compensate the cost of treatment, rehabilitation, burial. Contracts are concluded by competent citizens, enterprises, societies, corporations, holdings, organizations of different types of property. The responsibility of the profile company comes with road traffic events. Regardless of the number of damaged cars and injured people, the insurer will compensate for the amount of losses incurred.
It should be noted that the obligations of a financial organization apply to all road users. The responsible company covers the amount of actual material damage. However, there are situations when the insurance amount is not enough to fully compensate for the losses incurred (very expensive auto repair). In such cases, it is desirable to have an additional policy of obligations of the vehicle owner, concluded with the insurer in a voluntary form.
Dangerous objects as a subject of insurance
Currently, there is a clearly defined concept of “dangerous objects” in order to protect themselves from a possible loss through an agreement. These include coal and ore mines, oil platforms, plants of the metallurgical industry, gasoline and gas stations, warehouses with fuels and lubricants, chemical and manufacturing enterprises that produce explosives. The owners of all such companies are required to have a compulsory liability insurance agreement for owners of hazardous facilities. According to such a document, as a result of an accident or causing damage, injured people and owners of damaged or destroyed property will be able to receive monetary compensation.
Responsibility for the delivery of goods
One of the types of material protection is the conclusion of civil liability insurance contracts for freight holdings and forwarders. Through this line of business, the owner transfers possible property losses to the financial company if damage is caused to property interests or the state of health of other participants during the transportation or delivery of the goods. Events that may occur include total or partial loss of cargo, its damage. You can also insure liability for delayed delivery of goods, which entailed financial losses. In addition to property, this type of protection can take care of the life and health of passengers.
Compensation for environmental pollution
Recently, more and more accidents of anthropogenic nature have begun to appear, as a result of which environmental damage is being caused. In order to minimize such losses, professional organizations offer legal entities and individuals to purchase civil liability insurance contracts for the damage that they can cause to the surroundings, the state of health and life of people as a result of their production activities. Payment of financial compensation is carried out by a court decision for damage directly caused to the property or well-being of people. If losses have arisen as a result of accidental damage to equipment or leakage of harmful substances, as well as an accidental error of the policyholder’s personnel, this is also considered a contractual accident.
Medical Responsibility
Clients of financial companies are increasingly consulting on the issue of purchasing a product that would protect their professional activities in the event of unintentional errors. One of the voluntary agreements in this area is liability insurance of medical institutions and doctors. The agreement can be concluded both by specialized centers, state polyclinics, maternity hospitals, and private doctors, who operate on the basis of a license. The liability of the insurer occurs if the client harmed the health of the patients of the medical institution as a result of an incorrect diagnosis, any complications during treatment, infection with the disease with honey. procedures and other possible unforeseen complications.
Responsibility of Dog Owners
Pet owners often resort to the services of specialized companies to insure the life and health of their pets. Many professionals offer to use their products and additionally conclude a dog owners liability insurance contract. The main condition for signing the agreement is the official registration of the animal. This type of insurance document will help the dog owner if the pet attacks the person and injures him. The monetary compensation specified in the contract will be directed by the insurance company to reimburse the costs of treatment. Also, the presence of such a document will reduce the cost of legal costs and offset the cost of property damaged by animals.
Hunters and gun owners
Owners of weapons and hunting dogs are required to buy an insurance contract. According to such documents, the profile company is responsible for causing damage to property or people's lives when using officially registered weapons and ammunition. Very often hunting accidents occur, during which the health status of third parties, as well as their property interests, is impaired. Hunters liability insurance refers to the complex form in which a professional company insures the gun as an object, the life of a hunter, as well as liability to third parties. After all, hunting dogs can additionally injure or seriously injure other hunting participants and unauthorized persons, up to death. Such incidents are also an event in which the insurance company will be obliged to compensate for material losses.
Tour Operators
In case of insurance of civil liability of a travel company, a financial institution undertakes to pay monetary compensation if a loss was caused as a result of incomplete or insufficient fulfillment by the organizer of the obligations for the planned trip. Such events may be unintentional omissions in the preparation of documents for departure, the absence of booked rooms in a paid hotel, unpaid sightseeing tours or travel documents.
In addition to these types, companies that operate in the financial market offer liability insurance for owners of sports courts, homeowners and land owners.