Public Liability Insurance

Aperçu

Open a shop, run a school, build a block of flats or simply keep a dog at home, and you create a risk that has nothing to do with your own property: the risk that you injure someone else, or damage what belongs to them, and are made to pay for it in court. Public liability insurance is the cover that stands behind that risk. It does not pay for your own losses. It pays the person you have wronged, on your behalf, and it pays the lawyers who defend you.

In this lesson you will learn exactly what public liability insurance covers and who counts as a third party, how the same idea works in your private life as personal liability, how product liability follows the goods you sell long after they leave your counter, and the boundary that examiners test every year: why an injured customer is a public liability claim while an injured member of your staff is not.

Objectifs

  1. Define public liability insurance and explain the exposure it covers
  2. Explain personal liability and identify who may be held liable
  3. Explain product liability and describe the losses it indemnifies
  4. Distinguish public liability from employer's liability insurance

Note de cours

A customer walks into a busy supermarket in Lagos on a rainy morning. The floor near the entrance has been mopped but left unmarked and wet. She slips, falls, and fractures her wrist. She was not an employee and she had signed no contract with the shop, yet the accident happened on the owner's premises and through the owner's carelessness. She sues. The bill that follows is not for any property the shop owner has lost. It is money the owner now legally owes to a stranger, plus the cost of the lawyers. That exposure, the cost of harming other people, is what public liability insurance was built to carry.

Évaluation de la leçon

Félicitations, vous avez terminé la leçon sur Public Liability Insurance. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.

Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.

Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.

  1. Public liability insurance covers the insured's legal liability to: A. The insured's own employees B. Third parties who are members of the public C. The insurer D. The insured's shareholders Answer: B
  2. An injury caused by a defective product after it has been sold is covered by: A. Public liability insurance B. Employer's liability insurance C. Product liability insurance D. Fidelity guarantee insurance Answer: C
  3. Employer's liability insurance differs from public liability insurance mainly because it covers injury to: A. Members of the public B. Customers C. The insured's employees D. Passers by Answer: C
  4. Personal liability insurance responds when a person incurs legal liability in a: A. Trading capacity B. Private or domestic capacity C. Professional capacity D. Contractual capacity as an employer Answer: B
  5. A public liability policy has a limit of indemnity of 8,000,000 naira with legal costs payable in addition. Damages of 3,000,000 naira are awarded and defence costs are 600,000 naira. How much does the insurer pay? A. 3,000,000 naira B. 3,600,000 naira C. 8,000,000 naira D. 8,600,000 naira Answer: B

Livres recommandés

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Sous-titre: Thirteenth edition
Éditeur: Pearson
Année: 2016
ISBN: 978-0-13-408257-8
Description: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Sous-titre: Tenth edition
Éditeur: Wiley
Année: 2008
ISBN: 978-0-470-08753-4
Description: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Sous-titre: Second edition
Éditeur: Himalaya Publishing House
Année: 2017
ISBN: 978-93-5097-079-9
Description: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Questions précédentes

Vous vous demandez à quoi ressemblent les questions passées sur ce sujet ? Voici plusieurs questions sur Public Liability Insurance des années précédentes.

WAEC SSCE - Insurance - 2018

Question 1 Rapport

(a) List six experts that would require professional indemnity insurance in their operations.

(b) Explain the cover provided by each of the following insurance 'policies:
(i) personal liability
(ii) public liability
(ii) professional indemnity 
 

Voir la réponse