The word damages can mean anything from compensation for re-purchase due to defective delivery to compensation for physical injury after an assault. Usually the primary reason for a claim is to be reparative; that is, compensation is paid for e.g. repair, or loss of income. For a claim to be valid, it is necessary that someone has acted negligently or carelessly. From a legal point of view, these words have the same consequences. Other similar expressions are “defectively” or “unprofessionally”. Passive negligence can also form grounds for a claim.
Claims against a company are often made by contract ¬partners, and it is not unusual for a situation to be covered by a standard or individu¬al agreement. A common exemption is liability for compensation due to indirect losses, such as reduced profits. Insurance against consequential loss – when taken – can sometimes be used in such cases.
If there is no contractual relationship with the injured party, assessment of liability and the amount of compensation due is often made under the law of torts. This may for example apply when an object from the site strikes a pedestrian passing a building site.
Inform insurance company regarding any changes
In terms of damages and insurance, most companies are covered by liability insurance for claims made against the company in the course of its activities. You should always remember to advise us if your operations change during the insurance period, so that you remain fully covered.
To meet the varying demands of our customers, we offer a wide range of liability policies. Ge¬nerally, these policies cover personal injury or damage to property, which may have occurred as a result of your operations. Many companies also have cover for pure economic loss, which is damage unrelated to personal or property claims. This type of insurance provides good cover in consultancy activities. Claims against a company for late delivery or defective products are not normally covered by insurance.
Risks of this type are not insurable but fall within the company’s essential business risks. However, consequential damage from a defective product may be covered by insurance.
Things to remember when faced with a claim
- Speak to those involved and take notes
- Take photographs
- Retain damaged items and documentation
- Never admit responsibility or make payments without consulting If
- If a subcontractor has ultimate responsibility, enter a claim against him as soon as possible '
- Report the matter to If as soon as possible
When you report a claim to us, we will need the following information
- Clear description of the incident
- Any written claims made against you, such as a letter from a lawyer
- Adjustment to claim and reason
- Any contract or agreement between the parties, such as a standard or specific agreement
- Other documentation, such as industry practice, photographs, technical evidence, etc.
- Statement of other evidence, such as damaged items
- Witnesses, with information on job, title, and contact data Your nominated contact person, with contact data and e-mail address if possible.
Handling business and representing customers in matters affecting claims are part of our everyday work, so please contact us if you have any questions.