Liability Insurance

In accordance with effective legislation, a person who caused damage to the personality, property of a citizen or property of a legal entity must compensate for it in full. A legal entity bears full liability for the damage caused by its employee while performing his or her job responsibilities.

Liability insurance enables one to protect one’s property interests, connected with this commitment and means that the insurance company compensates for damage caused unintentionally by employees of the insurance policy holder to third persons. Sometimes an inflicted damage may constitute a considerable amount and in the absence of insurance may lead to serious financial consequences. Therefore, the objective of liability insurance is the protection of the insured party from possible damage.

When insuring liability, Pasha Insurance not only compensates for the inflicted damage, court expenses and other costs of settling the claims, but also in cases specified by the insurance contract regulates claims of third persons directly with no involvement of the insured party.

 

Pasha Insurance offers the most widespread kinds of liability insurance with regard to use of premises, hazardous production facilities, highly hazardous sources and different kinds of professional activity, as well as liability for quality of production, works and services.

Civil liability:

Whatever activity you are engaged in, there is always a risk of causing damage unintentionally to third persons during the use and maintenance of premises, buildings, constructions, and adjacent territories.

If your company is involved in construction, production or operational activities, then this risk increases due to the application of technical facilities and mechanisms, which are a source of increased danger with an increased number of persons, the interests of whom you may cause damage. This kind of insurance is based upon the commitment of the person who has caused damage to compensate for it. The insured event is a case, which results in the emergence of the obligation of the insured party to compensate for the damage caused as a result of performing the insured activities.

Considered as an insured event is inflicting damage to third persons as a result of:

• fire;

• accidents and collision of vehicles, cars and mechanisms and other sources of increased danger, as well as a number of other risks;

• Escape of water caused by water from water lines, sewage, heating systems and fire-extinguishing systems;

• crumbling of constructions or parts thereof;

• organization and conduct of sports and entertainment and cultural and mass events;

• organization and performance of works involving pyrotechnics, illumination and other special effects related to publicity events, campaigns and holiday decoration;

• maintenance and use of buildings, constructions and territories.
  

In the event injury, the amount payable as per insurance includes:

• remuneration, of which the effected person was depraved as a result of loss of work ability or its decrease as a result of the caused injury or other harm to health;

• additional costs, necessary to recover one’s health (high-calorie diet, sanatorium and spa treatment, outside care, prosthesis, transportation costs, expenses for paid medical service, etc.);

• funeral costs.
  

Professional liability:

In everyone’s work, even in that of highly-qualified specialists, there is a risk of a professional error, and all liability for the harm caused to life, health or property is born by the organization employing the specialists.

The enhancement of legal awareness of the population inevitably leads to an increase in the number of claims on the part of persons affected as a result of low-quality services. And, no doubt, the risk of claims increases significantly if these services are chargeable.

Besides pure finanical expenses, losses related to compensation for the caused damage, a range of associated troubles emerges, including negotiations with the affected party and conducting independent expert examinations. If the case is subjected to legal procedures, it consumes time and resources to participate in the court proceedings. This has an effect on the image of the company.

Professional liability insurance allows shifting the risk of causing unintentional harm to life, health and property of third persons to the insurance company. Availability of a contract does not mean a irresponsible attitude of a company to its professional obligations. On the contrary, it evidences a bona fide, rational and responsible approach to the interests of its business partners. Anyone can make an error, and a company, which does not frivolously rely on the impeccability of its employees, takes care of reliable protection of both its own interests and the interests of its partners by providing them a guarantee to compensate damages. This arouses greater confidence by counteragents.

Insurance units are property interests of a person, whose risk of liability for causing damage is insured, and are related to his obligation to compensate for:

• damage or injury to third parties;

• judicial and out-of-court expenses related to his responsibility for causing a damage to third parties
  

Employer’s liability:

The aim of employer liability insurance is to provide protection of property interests with regard to the obligations of employers pursuant to the legislation of the Azerbaijan Republic to pay compensation to employees (their heirs) for death, loss of work ability, physical injuries or other harm caused to their health while performing their job function. The insurance also covers judicial expenses and other costs for running the case in court.

This insurance provides coverage in the event of employees getting bodily injuries, poisoning, heat stroke, burns, frostbite, electric shock, fall from height, etc.

The insurance amount is set by parties at the time of concluding the contract and depends on the employee’s salary.

Insured by this kind of insurance are employees performing job functions as per the employment agreement, as well as individuals working on the basis of a civil contract.