Ábyrgðartrygging

Ábyrgðartrygging, commonly known as liability insurance, is a type of insurance that covers the insured against claims arising from injuries or damage to other people or property. It protects the insured from financial loss if they are found legally liable for causing harm. This type of insurance is distinct from first-party insurance, which covers the insured's own losses.

There are various types of liability insurance, tailored to different needs. General liability insurance is often a fundamental coverage for businesses, protecting them against claims related to bodily injury, property damage, personal injury, and advertising injury that occur in the course of business operations. Professional liability insurance, also known as errors and omissions insurance, protects professionals, such as doctors, lawyers, and consultants, from claims of negligence or mistakes in their professional services. Product liability insurance covers manufacturers and sellers for injuries or damages caused by their products. Automobile liability insurance is mandatory in many jurisdictions and covers damages or injuries to others in the event of a car accident.

The purpose of ábyrgðartrygging is to provide a financial safety net for individuals and businesses, ensuring that they can compensate those they have inadvertently harmed without facing potentially ruinous financial consequences. It encourages responsible behavior by mitigating the risk of severe financial penalties associated with causing damage or injury.