Legal liability is a key aspect of many business and personal insurance policies but what is legal liability and how does it arise?
Most individuals and businesses are aware of the need to protect themselves against claims made against them in respect of their liability to others and currently we live in a world where it appears that everything that happens is always somebody else’s fault. This culture, often referred to as the compensation culture, has led to an increase in the number of claims, certainly spurious claims made against individuals and business.
It is important to consider though that for the most part there is no automatic right to compensation; that is to say that there are very few areas where statutory compensation exists.
Legal liability is for the courts to decide and in order for an action to be brought successfully it must be brought under a defined area of liability.
Under what areas of law can a claim for liability be made?
These areas have been developed in both common law and statute and each are examined in more detail elsewhere.
- Strict Liability
- Contractual Liability and Liability Assumed Under Contract
- Statutory Liability
It is important to note that individuals, businesses and other organisations can also be held responsible for the actions of others under vicarious liability and this is a common source of claims under insurance policies.
How can I protect myself against legal liability claims?
There is a wide range of products in the marketplace designed to meet the needs of both the individual for protection against claims made against them in respect of their legal liability.
The key areas of protection are;
- public liability insurance
- product liability insurance
- employers liability
- professional indemnity insurance
- medical malpractice insurance
- directors and officers liability insurance
These are the major classes, although insurance is often provided under other guises and packaged products, for instance public liability insurance in private car insurance and home insurance.
If you have any queries about how liability arises or how you can manage your exposure to these risks please feel free to contact us directly.