Commercial liability insurance covers the legal obligation of the insured to compensate for damage incurred by another person in direct connection with the insured’s activities or relationship for which the insurance is arranged. The insurance also covers the insured’s obligation to compensate for damage incurred in connection with ownership, possession or other authorised use of immovable property used to perform activities specified in the insurance policy. Furthermore, the insurance covers the obligation to compensate for damage caused by a defect of a product or work that becomes evident after the handover.
In addition to liability insurance, other specific supplementary insurances can be taken out to cover, for example:
- damage to items used
- damage to items taken over
- net financial damage
- unauthorised infringement of the personality right
- compensation for mental suffering
- environmental pollution
The right to the insurance benefit arises if the cause of the damage, i.e. the violation of an obligation or another legal fact, occurs during the insurance term.
In the case of a product or work defect, it applies that the product must be put into circulation during the insurance term, or the work must be carried out and its outputs must be handed over to the customer during the insurance term.