Contractual Liabilities Insurance

Liability insurance is designed to protect your property as a whole from claims by third parties. Your property is not physically insured under this policy, but it is protected from being reduced, as the insurer will pay out compensation to a third party on your behalf.
This insurance protects your economic interest.

Liability insurance of all types can be divided into:

• Extra-Contractual Liabilities
• Contractual Liabilities

Extra-contractual liability is the type of insurance where the claimant is not in any type of contractual relationship with the insured. With this type of liability insurance, the principle of objective liability is applied (i.e. not necessarily based on the fault of the insured, but where damage is caused by an event).

Contractual liability is also called professional indemnity. With this type of liability, the insurer is responsible for compensation only if the insured fails to meet their professional obligations.