Liability insurance on injury

Liability insurance on injury

Everybody is obliged to compensate for an injury caused by intentional violation of good morals, injury caused by violation of an obligation required by law and injury occurring by violation of a contractual obligation. The obligation to compensate for injury is understood based on circumstances as the obligation to compensate for non-property injury and/or property damage (damage). Damage represents any loss of property, thus also lost profit.

For whom is insurance intended

Liability insurance for injury (insurance covering the obligation to compensate for injury) is today among the basic types of insurance protection of every company. It is not a question whether to take out liability insurance for damage but rather in what scope, with regards to the nature of activities undertaken and for what territory of operation.

Why take out insurance

In its business activity, the insured may cause injury to a third party in terms of life, health or property, and other property damages arising from such damage. Possible damages may even increase damage to one's own property that is several times higher. If a company should finance compensation to injured parties only from its own resources, it could even have existential consequences. Insurance is therefore effective protection against possible claims of third parties.

To what does insurance relate

The insurance contract may relate to the obligation to compensate for damage to:

  • health and life
  • to an item
  • to other property damage arising from injury to health, life and an item (so-called consequent financial loss)
  • to other property injury not arising from injury to health, life and an item (so-called pure financial loss)


Examples of damages

  • operational activity
  • liability for ownership of real estate
  • liability for damage to items brought in and left
  • liability for damage to rented space
  • liability for damage to another's used things (or animals)
  • liability for damage to another's things (or animals) assumed for the purpose of performing ordered activity
  • liability for damage to things of employees
  • subrogation of health insurance companies
  • liability for damage caused by a defective product and recalling products from the market
  • liability for environmental damage - environmental risks

Specific types of liability