It covers damage to life, health, property, and consequential financial loss of third parties. Liability insurance is taken out by entrepreneurs, legal entities (general liability) as well as individuals (private liability), employees (employee liability insurance against damage caused to the employer).
General liability insurance
General liability insurance should be an inherent part of the insurance coverage of every business entity, whether legal or an individual, and as such it ranks among the basic insurance products offered by an overwhelming majority of insurers in our market. Some insurers refer to it as to "business liability insurance" in order to draw a distinction from "citizen liability insurance", i.e. insurance of non-business persons, which is governed by other regulations.
1) Insured persons
The liability insurance usually applies to damage caused by:
the insured person (policyholder);
then authorised representative of the insured person (policyholder) and persons in charge of managing or supervising the insured business establishment;
the employees of the insured person (policyholder) during the performance of their work tasks.
It should be stressed at this point that the liability for damage caused by an employee or other person hired by an entrepreneur to fulfil his or her obligations towards a third person is always borne by the employer or entrepreneur, who can subsequently make a recourse claim.
2) Supplementary insurance
of liability for things taken over (another person's things have been taken over to carry out the ordered activity using these things) and liability for things in use (another person's things in use = things that have been leased, borrowed, etc.)