Liability Insurance

The main objective of liability insurance is to free the client from the claims for compensation of damage, which shall be raised against the client. That means the insurance company negotiates on behalf of client the claims with other party in case they are eligible. The insurance company will refuse the non-eligible claims of damage person. In case of legal dispute the insurance company shall represent the client concerning the compensation of damage and will pay potential cost of legal dispute.

Liability insurance for damage including product liability.

The client arranges this insurance for the case he is responsible for incurred damage and he is obliged to compensate it. In compliance with the Civil Code every person shall be responsible for damage caused to another person by operation. It is a wide liability that highly threatens the subjects with manufactural activities.

The financial stability of the company may be significantly endangered in case the company causes damage to another subject and is responsible for it and therefore is obliged to compensate it. The company has possibility to transfer the majority of this risk to the insurance company by means of the liability insurance for damage. The insurance company takes over the liability to compensate incurred damage for insured subject. The amount of compensation may vary from several tens to many millions crowns. Higher amounts of compensation are typical mainly due to damage to health or when the company is obliged to compensate loss profit to other party.

A very important liability is so called product liability. The product liability is regulated for the members of the European Community by the Directive of The EEC as of 25.7.1985. This regulation contains the assumptions of origin of product liability. The manufacturer is responsible for any damage caused by defects of his product. It is necessary to underline that the damage caused intentionally is excluded from this insurance.

As other liabilities for damage we can mention the following:
- liability for damage to items which are taken over and items which are in use
- liability for damage on stored items

Liability for damage due to work injury or occupational illness.

The Labour Code deals with questions of liability for damage incurred to employee while performing the employment duties or in direct relation with this duties. However these tasks are included in liability insurance for damage due to work injury or occupational illness.

Liability of employer for damage incurred to employee due to legal duty violation.

Liability of employer for damage incurred to employee on stored items.

Insurance for the members of the Board of Directors and the members of the Supervisory Board of joint stock company in case of liability for damage.

Liability for damage caused by employees as a result of their work.

Liability for damage caused by motor vehicle operation.

Liability for damage caused by airplanes operation.

Liability insurance for the operation of vessels.