• a wrongful act, other than a breach of contract, that violates a duty or the rights of another and for which compensation may be sought from the responsible party
• Civil or criminal
• Intentional or intentional

• liability assigned to one party for the conduct of another, based solely on a relationship between the two
• Parent child
• employer/employee

• Failure to use ordinary care.
• Example, running a red light.

• Failure to exhibit any sort of care through recklessness or deliberate indifference to the well-being of others
• Example: Driving under influence

• artificial condition on land that attracts children
• children are considered invitees to the premises if it contains an attractive nuisance

• Compensation to a husband or wife for the loss of companionship of a spouse

• Awarded to the injured party for the actual loss sustained
• Either Special damages or General Damages

Compensatory Damages

(Special damages)

• actual and known expenses
• Ex: Bills earnings

Compensatory Damages

(General Damages )

•  losses that cannot be calculated objectively and assigned a specific dollar value
• Pain and suffering
• disfigurment

• award to an injured party, in addition to compensatory damages
• Used to discourage wrongerdoer from repeating

• physical injury, including sickness, disease, and death caused by the acts or omissions of an insured
• expenses include medical bills, lost wages, mental anguish, pain and suffering

• arising from physical damage to tangible property
• include the actual cost of repair or replacement of the damaged property
• and inability to use damaged property (loss of use).

• Coverage for the bodily injury of third parties sustained on an insured location or as a result of the insured’s activities.
• Payments are made regardless of the insured’s negligence

• arising from specific offenses committed by an insured that results in injury other than bodily injury or property damage
• Slander libel false arrest

• An accident includes continuous or repeated exposure to the same general harmful conditions.
• Leaking pipe

• Insured must notify the insurer in writing
• include the named insured, policy number
• details about the time, place, circumstances of the occurrence
• names and addresses of any claimants and witnesses.

• Duty is owed (injured party prove wrongdoer owed duty)
• Violation of Duty (Violated that duty owed)
• Violation of Duty is Proximate Cause (Prove the the wrongdoers negligence was the procimate cause)
• Foreseeable Consequence (Prove the damges were forseeable)

insured may use :

• Common law -Law practiced as the result of judicial or court decisions (case law and precedents)
• Satutory law-Written law enacted by legislatures

• Prevents recovery for damages caused by a negligent party if the claimant was negligent to any extent.
• (Claimant neg = NO recovery)

• Prevents recovery if the claimant knowingly assumed the risk.
• Ex- sky diving

Prevents/limits recovery if:

• separate negligent act occurs after the original negligent act
• but before damage occurs
• must be unexpected and unforeseen

Damages are reduced in proportion to the degree of the claimant’s negligence

• example, if the claimant is 5% negligent and the wrongdoer is 95% negligent, the claimant may recover 95% of damages.

• length of time during which legal proceedings may be initiated
• established by federal or state law

• often associated with dangerous animal ownership
•  abnormally dangerous activities
• a claimant does not have to prove fault in order to collect damages

• restrict the rights of the injured party to sue unless the injuries are severe
• AKA personal injury protection (PIP).

• Clause that in the event more than one insurance policy covers a loss, each will pay its share of loss in proportion to the total insurance on the risk.
• Example: A pays 250,000 and B pays 500,000

250,000+500,000=750,000

So a pay 1/3 = 250,000

Limits of Liability

(Per Occurrence Limit )

• The most the policy will pay for all losses arising out of any one occurrence

Limits of Liability

(Per Person Limit)

• The most the policy will pay for loss to any one person injured in any one loss

Limits of liability

(Aggregate Limits)

Limits of Liability

(Split Limit)

The most the policy will pay for loss of different types that occur as a result of any one loss

• Per person limit(Bodily)/Per Occurrence(Bodily)/Per Occurrence(Property)
• Ex: 100/300/100

Limits of liability

(Combined Single Limit)