Liability insurance (as distinct from general insurance or business interruption insurance) in broad terms provides cover to a policyholder in respect of legal liability arising through matters of law such as statute, nuisance or negligence. Typically, payment is not made to the policyholder themselves but rather to a third party (or parties) who have claimed against the policyholder. Claims arising through a deliberate act or assumed under contract are usually excluded.
In the overall spirit of this book it is not the intention to discuss the topic of liability insurance in depth other than to consider how the topics of data and analytics currently play a part, or will play a part in the future.
Typical types of liability insurance might include:
- Employers' liability insurance, otherwise known as ‘Workers Compensation’ in the US.
- Public liability, which extends to members of the public who suffer loss or are damaged by acts or omissions of the policyholder.
- Product liability, relating to goods provided by a policyholder which prove to be unsuitable for purpose.
- Third-party liability, such as in the case of a car accident.
In addition, we will also briefly consider the issue of directors' and officers' liability especially arising from cyber security breach, although this is a relatively new area of interest.
8.1 Employers' Liability and Workers' Compensation
Employers' liability and in the US, ‘Workers’ Compensation' insurance is ...