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In liability insurance, especially when linked to economic activities, there may be many different covers. Let us look at the difference between two of them:
- Direct liability
- Subsidiary liability
Direct Liability
Direct liability is liability attributable to and enforceable against a person, whether an individual or legal entity, for their own acts or for acts of other people for whom they must respond by virtue of:
- Family relationship, such as when a parent must answer for damage caused by a child to third parties.
- Subordination.
- Dependence.
- Also for the liability generated by animals or things owned by that person.
Subsidiary Liability
Subsidiary liability is required of a person in substitution for, or instead of, the person who caused the damage, against whom the proceedings are directed and who cannot respond financially because they are insolvent.
In liability insurance, these two forms of liability are usually included in different guarantees or covers. Most insurers include direct liability in the liability cover for public liability and then offer the option to add subsidiary liability cover.[/vc_column_text][/vc_column][/vc_row]