How Does Liability Work?
Liability functions by determining whether an individual or business is legally responsible for inflicting harm or damage to another person. Commonly, how liability is determined is based on four key factors:
- Duty of care
- Breach of duty
- Causation
- Damages
The responsible party must first have a confirmed duty to act safely, like a driver obeying traffic laws, before liability can be officially assigned. Second, there needs to be proof that the duty of care has been breached either through an error or act of negligence. Then, it has to be proven that this breach directly caused harm and resulted in measurable damages such as medical or repair expenses.
Once these factors are identified and addressed, liability can be assigned, and the responsible party may be held responsible for the resulting costs.
Explore The Different Types of Liability Coverage
Just as there is an extensive range of situations that can lead to liability claims, there is equally a wide variety of different types of liability, such as:
Personal Liability—this variety of liability coverage directly addresses any injuries, damages or accidents that can occur in everyday life. If someone slips on your driveway during the winter or an accident on your property results in the damage of your neighbor’s property are both prime examples of situations that can lead to personal liability claims.
Business Liability—professional liability coverage protects companies from any and all liability claims that can occur on their premises, including customer injuries, damages to property or any negligence that could lead to the prior examples.
For more information on what liability coverage will best address your needs, we invite you to visit NEC Insurance conveniently located in Pacific, MO to learn more.
What Is The Difference Between Fault And Liability?
Two terms you’ll hear used interchangeably are fault and liability—it’s important to know that these two terms do not mean the same thing.
Fault—refers to the individual or corporation who directly or indirectly caused the incident that resulted in damages or harm.
Liability—refers solely to the legal responsibility of assuming the expense related to the damage or harm inflicted in the accident or incident.
For example, a driver who loses control of their vehicle due to ice, which results in an accident, would be at fault for causing the accident, but they may not be held liable. There is a fine distinction between these two terms, but it’s important to understand the differences since liability coverage will only protect you when fault is still being disputed.
Learn More About Liability At Your Trusted Insurance Provider In Pacific, MO
Have more questions about liability coverage and how you can protect yourself? Stop by or contact NEC Insurance today to learn more.
