Civil Liability Insurance
A third party civil liability insurance protects you in the event for which you may be held liable and which affect the property, integrity or life of others. In such a situation, in which you can be legally liable, the financial compensation you should pay from your own budget is covered by insurance.
Types of liability insurance
1. Civil liability shipping companies
The insurance is intended for:
- For Expedition Companies that have a valid execution license for activities related to road transport, issued by the Romanian Road Authority;
- The transport companies that perform besides the road transport activity and transport intermediaries and for this purpose have besides the transport license also an execution license for activities related to the road transport, valid, issued by the Romanian Road Authority.
Civil liability insurance is mandatory, imposed by the legislation on the organization and performance of road transport and related activities, by Emergency Ordinance no. 109/2005, issued by the Romanian Government and Order 1987 / 18.11.2005 issued by the Ministry of Transport, Construction and tourism.
The insurance is necessary in order to obtain the license for activities related to road transport, activities of intermediation of public road transport operations.
The civil liability insurance for the activity of intermediation of the public road transport operations covers the liability of the insured employee towards the clients / beneficiaries for the damages caused to them, as a result of some acts, deeds, committed through his fault (errors, omissions, unintentional mistakes ), during and / or in direct connection with the development of the intermediation activity in the road transports of goods or persons, for which it is authorized.
The insured amount will be established in EURO, according to the provisions of the legislation in force regarding the road transport activity and the activities related to them.
The insurance premium is established depending on the insured amount, and can be paid in full or in installments.
This type of policy can be concluded by any legal person authorized and certified in the provision of services and the execution of specialized works at its own headquarters or at the client’s home. Among these we mention: cleaners, watchmakers, shoemakers, companies that offer furniture installation services, windows, antennas and cable TV, repairs of electronic or household appliances, painting and other interior decorations, gardening, etc.
The civil liability insurance will cover the amounts of money lost by the insured for compensating the damages caused during and by carrying out the activity. Thus, in case of one of the risks specified in the policy, as a result of which there are material damages (damage or destruction of property, injured third party), personal injury or death of a third party, the insurer will pay the amounts that the insured should pay as compensation, the injured person, or the rightful heirs in the event of a death. The insurance company will also pay the costs of the insured, in case he was obliged to pay compensation by the court, as well as the costs of the injured third party, if the insured was obliged by court decision to pay them.
This policy covers only the damages caused by the insured to a third party and not to the insured and his assets or his employees. For a complete coverage of the risks faced by a company of any kind, the insurance companies offer insurance packages or offer various additional clauses adapted to the requirements and fields of activity of the insured.
The beneficiary of the insured amount is usually the insured, but the compensation can be paid directly to the damaged person or his heirs, with the consent of the insured and if he has not already been compensated by the insured from his own means.
The insured amount and the related insurance premiums depend on the case, taking into account the type of services provided and the usual risks of the activity.
2. Civil liability of service providers
3. Civil liability of the manufacturer and importer
This civil liability insurance can be contracted by any natural or legal person, holding the quality of producer, ie being: the manufacturer of raw materials, components or finished product, the person who using the name or brand of his company on a product presents himself as a manufacturer. Included in the insurance under the same conditions are the persons who import products in order to sell, rent them or distribute them in any other form. Authorized distributors of the product can also be insured with this policy insofar as they intervene on the product in one of the mentioned forms.
In general, the insurance policy can include a wide range of products, except: explosives, fireworks, volatile products, medicines, chemicals (paints, fertilizers, pesticides, etc …), weapons, ammunition, genetic materials, some medical equipment and implants, sa
The insurance company will cover the financial losses that the insured should bear in case he caused a damage and is obliged to repair it. In the case of the manufacturer, it is about the damages followed by the sale of the goods and which, through its use, can cause bodily injury, death, material losses.
Usually, compensation is offered for: the amounts that the insured must pay as damage (for injury, death, material damage accidentally caused by a product made by the insured) and court costs incurred by the insured or the injured party if the insured was obliged to pay by court decision. Compensation can be granted directly to the injured party (or his heirs in case of death) or to the insured.
This insurance is necessary to cover material losses following a civil lawsuit. Regardless of what a company produces, raw materials or finished products, food or components, there is always the possibility of placing on the market a contaminated or defective good, and its distribution on the market can bring a civil lawsuit with huge amounts to be compensated. The liability of the manufacturer and that of the importer or distributor is very high in this case and the amounts paid as compensation may lead to a regression in the evolution of the company or even to bankruptcy.
This insurance offers protection to the insured in connection with the losses and expenses necessary for the compensations determined by the employer’s negligence. The insurance covers the material losses of the employer as a result of the damages caused by his fault, to the employees whose activity is carried out on the basis of an employment or apprenticeship contract.
- injury and death to employees;
- expenses incurred by the insured in civil proceedings (if he was obliged to pay compensation);
- employee costs (as damages);
- damage or destruction of the employee’s property (among these we mention official documents that are in the employer’s custody)
The compensations cannot be higher than the insured amount or the value of the damage.
The beneficiary of the insured amount may be, as the case may be, the insured, the damaged employee, with the consent of the insured or in case of death the legal heirs of the deceased person.
Usually, the damage is ascertained by the insurance company together with the insured or his proxy. Depending on the situation, with the agreement of both parties, experts can be consulted and in case of death, the forensic expertise will be taken into account.
4. Employer’s liability insurance
5. The legal civil liability of the landlord towards the tenant
This civil liability insurance is addressed to those who own a building that they rent to other people, with the destination of housing, commercial space, office, etc. These can be individuals or legal entities.
Following the lease contract attesting the rights and status of the persons registered in the contract as owner and tenant, the insurer will cover the damages caused by the landlord as an insured to the tenant, in this situation being the damaged one. Damages caused by the fault of the insured usually refer to the conditions of maintenance of the rented space, provided that they occur within the limits of validity of the rental contract and the insurance policy.
The insurer will grant the amounts that the insured must pay to the injured party, as a result of certain acts committed through his fault for the following:
- damages caused to the tenant by bodily injuries and death;
- damages caused to the tenant by destroying or damaging his property;
- court costs of the injured party as well as expenses incurred by the insured in civil proceedings (if he was obliged to pay compensation and pay court costs).
This type of policy can be purchased by individuals or legal entities as tenants, who have the right to temporary use of a building or parts of the building based on a rental agreement concluded with the property owner, in exchange for a sum of money established in contract.
It covers the damages caused by the tenant to the landlord, in terms of the rental contract and in terms of the validity of the insurance policy, as a result of the acts committed through his fault, or other persons for whom he is liable under the law, as well as animals and objects its legal.
Compensation is granted for the following:
- damage caused to the owner by personal injury and death
- damage caused to the owner by destroying or damaging his property
- court costs of the insured in civil proceedings, as well as those of the injured party, if the insured was obliged to pay compensation and pay the court costs.
6. The legal civil liability of the tenant towards the landlord
7. Civil liability transport operator (ROTR)
It covers the risks of material damages caused to third parties who have the quality of beneficiaries of the transport services provided by the insured.
ROTR insurance is intended for road transport operators to obtain a transport license. According to the legal provisions in force, the transport operator must prove that it has a financial capacity of 9,000 euros for the first vehicle and 5,000 euros for each of the other vehicles.
In order to better understand this type of insurance we invite you to schedule an appointment with a Destine Broker consultant, here.
ROTR insurance covers the liability of the Insured for material damages caused to third parties who have the quality of Beneficiaries of transport services provided by the insured, in carrying out road transport contracts concluded, following the completion of legal proceedings to liquidate the insured, if the debt to the injured third party did not die out after consuming the insured’s own financial capacity through payments made to its debtors.
