General third party liability

General third party liability insurance is primarily addressed to companies and it covers general mandatory liability, which is directly related to economic activities, to both third parties and company’s own clients in case of personal injuries or property losses.

What is the general mandatory liability?

Mandatory general third party liability is the potential liability that a company has in connection with direct performance of general economic activities to the following persons:

  • third persons – e.g. losses caused by heavy snow fallen from a building of the company, losses caused to the office located downstairs by pipeline rupture, personal property damages due to construction works outside the construction site, etc.;
  • own clients – client has slipped in the office, client’s property has been damaged during the repairs, tenant’s office equipment has been damaged due to ruptured pipeline, unexpected damage caused to the contracting party at construction site, etc.

See for detailed insurance terms and conditions here. Contract can be concluded and additional information requested in any sales facilities across Estonia.

FAQ

When does the general third party liability insurance cover commence and end?

Insurance cover commences on the date stated on insurance policy and ends on the date that is specified as the end date of insurance contract. Contrary to other insurance products, please note that although the insurance cover commences on the date stated on insurance policy in case of general third party liability, the general third party liability ends after the product, activity or service has passed over to the client, contracting party or those entitled under him/her. Losses revealed or occurred after the product, service or activity has been passed over can only be covered by product liability insurance. 

Does the general third party liability insurance mitigate all risks of the specific field of activity?

General third party liability insurance does not cover the liability for services or products that have been passed over to the client, contracting party or those entitled under him/her. Furthermore, it provides inadequate or no cover in case of liability that goes beyond general third party liability. E.g. the cover does not include the following:

  • losses occurred outside direct activities;
  • risks that are specific, require relevant special training and are inherent only to a very narrow area (e.g. construction worker makes an error in the composition of mortar; car repair shop installs the safety equipment incorrectly; repair shop ruins the repaired electronic device; hiking guide directs the tourists into direct danger);
  • risks that are meant to be covered by professional liability insurance – e.g. warehousing, port operation, law firm activities, event management, provision of medical services, transport, freight forwarding, designing services, accounting services, etc.