ABSTRACT
Liability insurance provides cover in respect of the insured’s liability, usually for loss or damage to another person for which the insured is responsible. The contingency which triggers the insurer’s obligation turns on the insuring clauses of the policy. The exact trigger, the form in which liability appears, may be actual loss to the insured, the occurrence out of which the loss (actual or potential) arises or, more commonly today, the making of a claim by a third party, the victim, against the insured. When the contingency occurs, the insurer’s main obligation is to indemnify the insured against fi nancial loss, to protect the assets of the insured. However, the insurer’s obligation is usually qualifi ed by policy terms.
