Civil Liability

Protect Yourself
From Damage
Done to others

Why Is Civil Liability Insurance So Important?

Civil liability coverage is the most important protection because it can help you avoid losses that exceed the total value of your assets.

The basic principle of extra-contractual civil liability relies on the fact that every individual has an obligation to conduct himself in a civil manner and to repair, if necessary, any damage he has caused to others.

The purpose of civil liability insurance is to compensate a third party for damage caused by the insured insofar as it is not excluded by the policy.

Here are some examples:

• You are a cheese maker and in the manufacturing process, a screw accidentally falls in the cheese. A client then buys your product in a grocery store and breaks a tooth on the screw. The client could decide to file a lawsuit against you for the damage suffered and loss of use caused by this incident.
• While trying to repair the plumbing system of one of your clients, you cause a flood in his house. Your client could sue you for water damage.

Coverage and Exclusions

Civil liability insurance mainly covers the following elements:

• Property Damage – In most contracts, a deductible is applied for property damage caused to a third party
• Personal Damage
• Risks incurred after completion of the work

It is possible to add other endorsements with limits:

• Medical fees
• Fire Legal Liability
• Liability in relation with publicity
• Exposure to blasting
• Liability in relation with employee benefits
• Employers Liability
• Contract Liability
• Explosions, collapsing and underground risks
• Expenses for the fight of forest fires
• Endorsement for fungus and other related problems
• Faulty Work
• Car insurance for non-owners

The main exclusions are the following:

• Complete exclusion of anything related to asbestos
• Exclusion of terrorism
• Exclusion of fungus and other related problems
• Intentional Deed

The damage must occur during the period when the policy is valid and must result from a claim unrelated to an exclusion to the contract. Also, the expenses for the investigation and defence are generally covered by the insurers and are added to the limit of liability.

Each insurance company possesses their own form for civil liability with their own specificities. Consult your Lareau insurance broker in order to know what is covered and read your contract carefully.

What to Do in Case of an Incident?

1. Communicate as quickly as possible with your Lareau insurance broker to declare the incident. Do not wait to receive a claim. The investigation must starts immediately.
2. Write down the identity of the witnesses and their information
3. Keep all elements of proof
4. Restrain yourself from admitting your responsibility and making a compensation arrangement with the implicated parties. Your broker and your claims adjuster will undertake the necessary steps.

Do no wait any longer! Make an appointment with one of our consultants and allow yourself to do what you do best, without any worries.