Civil Liability Insurance
Third-party civil liability insurance protects you if you are held liable for incidents that affect the property, integrity, or life of others. In such situations, where you can be legally liable, the insurance covers the financial compensation you would otherwise pay from your own budget.
Types of liability insurance
1. Civil liability shipping companies
The civil liability insurance for shipping companies is intended for:
- For Expedition Companies that have a valid execution license for activities related to road transport, issued by the Romanian Road Authority.
- Transport companies that perform transport brokerage services in addition to road transport activities hold, in addition to the transport license, an execution license for road transport-related activities. This license is valid and issued by the Romanian Road Authority.
Civil liability insurance is mandatory under the legislation governing road transport and related activities. This requirement comes from 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.
Coverage
A civil liability insurance for the activity of brokering public road transport operations covers the liability of the insured towards clients/beneficiaries.
It covers damages caused to them as a result of acts or omissions committed through fault during and/or directly related to the brokering activity. Examples: errors, omissions, unintentional mistakes made.
The insured amount will be established in EURO. This will follow the provisions of the legislation in force regarding road transport activities and related activities.
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 authorized legal entity. The entity must be certified to provide services and perform specialized work. The work can be carried out at the entity’s premises or at the client’s home.
These include: dry cleaners, watchmakers, cobblers, companies offering furniture assembly services.
Also, window, antenna, and TV cable installation, electronic or household appliance repairs, painting, and other interior decorations.
Gardening services are also included, and more.
Coverage
Civil liability insurance covers the amounts of money the insured loses. It compensates for damages caused during the activity.
If one of the risks specified in the policy occurs and there is material damage (damage or destruction of goods), bodily injury, or death of a third party, the insurer will pay the amounts the insured owes to the harmed person or their heirs in case of death.
The insurance company will also cover the insured’s legal expenses if the court orders the insured to compensate. Additionally, the insurer will cover the legal expenses of the harmed third party if the court orders the insured to pay these expenses.
This policy only covers damages caused by the insured to a third party. It does not cover damages to the insured, their property, or their employees.
Insurance companies offer insurance packages for a complete risk coverage.
They also offer different supplementary clauses adapted to the insured’s requirements and business activities.
2. Civil liability of service providers
3. Civil liability of the manufacturer and importer
This civil liability insurance policy can be contracted by any individual or legal entity that holds the status of a producer.
Examples
It can be: the manufacturer of raw materials, components, or finished products, the person who, using their name or brand on a product, presents themselves as the producer.
The insurance also covers individuals who import products for the purpose of selling, renting, or distributing them in any other form, under the same conditions.
Authorized distributors of the product can also be covered by this policy to the extent that they intervene with the product in one of the mentioned forms.
In general, the insurance policy can include a wide range of products, excluding explosives, fireworks, volatile products, medicines, chemicals (paints, fertilizers, pesticides, etc.), weapons, ammunition, genetic materials, certain medical equipment, and implants.
Coverage
The insurance company covers the financial losses the insured must bear if they cause damage and are required to repair it. For manufacturers, the coverage applies to damages resulting from the sale of goods that, through their use, can cause bodily injury, death, or 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).
- 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 covers material losses following a civil lawsuit. Whether a company produces raw materials, finished products, food, or components, it may still place a contaminated or defective product on the market. Distributing such a product can result in a civil lawsuit with significant compensation amounts. In this case, the manufacturer’s liability, as well as the liability of the importer or distributor, is very high. The compensation amounts can halt the company’s progress or even lead to bankruptcy.
This insurance protects the insured against losses and expenses necessary for compensations caused by the employer’s negligence. It covers the material losses the employer incurs due to damages caused by their fault to employees working under 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.
Who is the beneficiary
The insured amount may benefit the insured, the damaged employee with the insured’s consent, or, in the case of death, the legal heirs of the deceased person.
The insurance company usually determines the damage with the insured or their proxy. Depending on the situation, both parties may agree to consult experts, and in the case of death, they will consider the forensic expertise.
4. Employer’s liability insurance
5. The legal civil liability of the landlord towards the tenant
This civil liability insurance is intended for individuals or legal entities who own a building that they rent to others for housing, commercial space, office use, etc.
The rental contract defines the rights and status of the owner and tenant. As a result, the insurer will compensate the damages the owner causes to the tenant, who is considered the harmed party.
The damages the insured causes typically relate to the maintenance conditions of the rented space. These damages must occur within the validity limits of the rental contract and the insurance policy.
Coverage
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).
Individuals or legal entities can purchase this type of policy as tenants. They have the right to temporarily use a building, or parts of the building based on a rental agreement with the property owner, in exchange for a sum of money specified in the contract.
The policy covers damages the tenant causes to the landlord under the rental contract and the validity of the insurance policy. It includes damages resulting from the tenant’s actions or those of others for whom the tenant is legally responsible. The policy also covers damages caused by animals and legal objects.
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.
- the policy covers the court costs of the insured in civil proceedings. It also covers the court costs of the injured party if the insured must pay compensation and cover the court costs.
6. The legal civil liability of the tenant towards the landlord
7. Civil liability transport operator (ROTR)
The policy covers the risks of material damages that the insured causes to third parties who are beneficiaries of the transport services provided.
ROTR insurance helps road transport operators obtain a transport license. According to current legal provisions, the transport operator must prove financial capacity of 9,000 euros for the first vehicle and 5,000 euros for each additional vehicle.
To better understand this type of insurance, please schedule an appointment with a Destine Broker consultant, here.
Coverage
The ROTR insurance covers the liability of the insured for material damages caused to third parties. These third parties are the beneficiaries of the transport services provided by the insured.
It refers to the execution of road transport contracts. These contracts are concluded after the insured has gone through judicial liquidation procedures.
The insurance is valid if the debt to the harmed third party has not been settled. This applies if the insured’s financial capacity was depleted through payments to their debtors.
