General liability is a term that, within the framework of Spanish Civil Code legislation, covers a broad concept. As we will see below, it must be distinguished from other more specific types of liability.
The most common comparison is with professional liability. In the following lines we examine these nuances.
What Is General Liability?
It is the obligation every person has, supported by the law applicable in Spain, to compensate others for damage they may cause by action or omission. Such damage may involve both intentional conduct and negligence.
When compensating these personal or material losses, the usual criterion is monetary compensation. There are different ways to compensate damage caused to third parties, but in general the legally relevant ones lead to an indemnity. This means paying the costs determined by a court for the damage attributed.
Practical Examples
Examples of general liability help us understand the concept more clearly. People can generate risks for others in many ways, including:
- running over a pedestrian who was crossing at a zebra crossing;
- losing important official documents that were at a friend’s house;
- accidentally hitting an elderly person with a ball while playing with your child outside that person’s home.
Differences Compared with Employer’s Liability
Employer’s liability falls within the general liability concept explained above. However, its specific area is what distinguishes it. It is liability determined by work.
This does not only refer to actions that may occur while carrying out a specific work activity, but also to events that may arise in the facilities where that work is being performed.
The General Liability Policy
Finally, it should be noted that there is a general liability policy for each type of insurance. In this respect, we can highlight employer’s liability, tenant liability, public liability and product liability. These provide financial cover for the costs of damage that may be caused to third parties.
Employer’s liability policies are also available and are adapted to the characteristics of each job.
In short, general liability is one of the key legal situations in our society, so it is advisable to cover it with suitable insurance.