Liability is a legal concept defined as the obligation imposed on a person to pay for losses and damage caused to another person’s assets or person.
It is classified into two groups:
- objective liability
- and subjective liability.
Types of Liability
There are two distinct types of liability. They have differences that affect payments and the cover sometimes provided by insurance policies.
Objective Liability
This involves compensation for damage caused by a person regardless of possible fault. The relevant articles of the Spanish Civil Code include:
- 1905: damage caused by an animal in any case, even if it has escaped. There are two exceptions: force majeure or fault of the injured party.
- 1906: damage caused on land adjacent to a hunting estate is the responsibility of the owner of the latter.
- 1907: damage caused by a building that has not been properly maintained is the responsibility of the owner.
- 1908: explosions of improperly maintained machinery, smoke, trees located in transit areas or emissions from deposits or sewers are the responsibility of their owner.
- 1909: damage deriving from the construction of a building within the legal period is the responsibility of the builder or architect.
- 1910: if damage occurs due to objects being thrown from a dwelling, the head of the household is responsible.
These articles establish the basis of objective liability, leaving no room to avoid payment where it applies.
Subjective Liability
The person who caused the damage is responsible for repairing it. It is called subjective because it arises from human action and whether or not there is fault has an interpretative element.
A good example is traffic accidents: the attribution of fault is subjective and is sometimes determined by a court ruling.
Differences Between Them
The fundamental difference between both concepts is whether the assessment of fault is subjective. In the first case, a person may be responsible even without being the direct cause, generally because the damage could have been prevented. In the second case, the person is responsible for the fault because they caused the damage directly.
Why This Matters in Liability Insurance
Insurance policies include specific clauses referring to liability. Each type of policy sets out causes linked to both objective and subjective liability that must be reviewed in order to know when the insured party is covered.
Liability may be objective, in the cases established in the Civil Code, or subjective, when the insured party causes the damage. As a general rule, objective and subjective liability are covered in policies provided they derive from an accident.
If you need an insurance brokerage specialising in liability insurance, we are at your disposal.