| gen. |
liability insurance (insurance against claims of loss or damage for which a policyholder might have to compensate another party. The policy covers losses resulting from acts or omissions which are legally deemed to be negligent and which result in damage to the person, property, or legitimate interests of others. In comparison with most other forms of insurance, liability insurance is a relatively recent phenomenon. A very modest amount was written before 1890, but it was principally the introduction of the automobile after that year that spurred the rapid growth of this form of insurance, which now extends to a great many activities in addition to the operation of an automobile. Other types of liability insurance include professional liability for doctors and other professionals (malpractice insurance), marine liability for boatowners and operators, and products liability for manufacturers of consumer goods. Protection can also be provided against the possibility that one may be unable to fulfill the terms of a contract or against the risks involved in activities that are considered so dangerous to other people or property that the law requires persons engaged in them to assume responsibility for their consequences no matter how much care is taken to avoid damage. Examples of this last type, called absolute liability, vary from one legal jurisdiction to another but may include, for example, the ownership of dangerous wild animals. Britannica Alexander Demidov) |
