ABSTRACT
Liability insurance provides cover in respect of the insured's liability, usually for loss or damage to another person, and for which the insured is responsible. The event that brings a case within the scope of a particular policy and period of cover is the event that is specified in the insuring clause. PI policies commonly exclude cover for "damage" to persons – death, bodily injury or sickness. "Property damage" usually has a physical connotation. One of increasing prominence and importance concerns environmental damage. The amount of loss covered and recoverable is the amount in damages that, as the consequence of the liability imposed in law, the insured is obliged to pay to third parties. Prima facie claims-made insurance covers claims made against the insured during the period of cover. Notification of circumstances means that the insurer must be given notice of relevant circumstances of that kind, of which the insured was aware.
