What is civil liability?

If you get into a car accident or any other incident, someone has to be held responsible. Civil liability is a part of commercial liability insurance that will help you navigate the process. What does this come down to? It’s all about the type of damage caused by the accident. Having insurance will allow you to defend yourself if someone were to take legal action against you, which isn’t uncommon when who’s at fault for the incident doesn’t have a straightforward answer.

Now, you might worry if you were the one behind the damage caused. After all, depending on the severity of the damage, it can be costly to pay for everything out of pocket. At BrokerLink, we understand that knowing what to do in these situations is important. Let’s review.

Understanding civil liability

So, what does civil liability mean? Let’s discuss an example. If you suffer damages or get injured due to an action from another person or company, you are entitled to compensation. If you can prove who’s at fault, the other person or business has the civil liability or responsibility to pay for damages. However, you have to prove beyond a reasonable doubt that it was their fault that the accident happened.

Types of civil liability

Civil liability is a type of legal obligation required when someone suffers an injury or other damages as a result of someone else’s actions. However, it isn’t always this simple, as there has to be enough proof to hold a person liable. There are two main types of civil liability: contractual liability and extra-contractual liability. Let’s discuss them below:

Contractual liability

Contractual liability comes into play when someone neglects or willingly opts not to fulfill their obligations as written in a contract. This is usually the case when someone gets injured. Everyone has the right to honour their commitments. When a person gets a bodily, moral, or material injury as a result of someone’s actions, the rules written in a contract come into effect.

Extra-contractual liability

Yes, the names are similar, but extra-contractual liability has its own set of rules. This type of liability occurs when someone’s actions cause damage to another person or their property. It also comes into effect when someone damages another person’s property when it is left in their care.

Understanding these differences will help you navigate your civil case, whether you are the one who is at fault or you are a victim of someone else’s negligence. Knowing the type of case you’re walking into will give you some form of reassurance. However, it’s essential to understand that civil law differs from criminal law, which we will discuss in more detail soon.

Comparing civil and criminal liability

Civil and criminal liability have a few key differences. Yes, they can be settled in court, but they are different. There are distinct characteristics of civil cases and criminal cases. Let’s go over them so you know the difference.

Civil liability

The goal of civil cases is to determine how much the victim should be compensated for damages caused by another person or company. These cases are private matters. Liability in civil cases is determined based on whether negligence or other forms of misconduct were present. They take place in civil court with a judge and sometimes a jury. Additionally, the standard for evidence is quite low in these cases, and monetary damages are paid out when someone wins a case:

Criminal liability

Criminal cases are about holding someone responsible for criminal acts. The consequences are dire forms of punishment, and the government is the party that holds someone accountable for criminal liability. Few criminal cases make it to trial, and criminal charges are usually issued after settling on a plea deal. Additionally, there has to be sufficient evidence to prove someone committed a criminal act without a reasonable doubt. The end of a criminal case results in charges such as fines, probation, or imprisonment if someone is found guilty.

Civil liability is about compensating someone for damages, while criminal liability is a government matter that can result in more severe forms of punishment. While the two can both go to trial, this is rare. The ways the law can punish a person differ, but ultimately, it’s about getting justice for those affected by someone else’s actions. If you are dealing with a civil matter, keep reading to find out how you can be compensated for damages.

How you can be compensated for damages in a civil case

When you suffer any sort of damages, you can be compensated for it. Often, this is in the form of the person who caused them to pay a certain amount of money. However, knowing that this is to compensate you for what happened and not grow your wealth is essential.

However, determining an exact number is often harder said than done. That’s because, depending on the consequences, there isn’t always an accurate price to pay. For example, if an injury prevents you from playing sports, alters your physical appearance or causes pain, finding out how much money you should receive is difficult.

It’s also important to think ahead. You can also receive money for future damages you will suffer. This can include loss of your future salary if you cannot work due to an injury. The following section will explain how you can seek compensation for damages in a civil case:

Proving your case

For a person or company to be held liable in court, you must have evidence. You must prove the damages caused by the other party, which is sometimes easy and other times difficult. Let’s give an example. If you fall and break your glasses, all you have to do is provide the invoice from the optician to show how much it costs to repair or replace your glasses.

Let’s talk about some instances where the costs of damages are discretionary. Losing friends can happen when someone attacks your reputation. If this were to happen, the plaintiff would have to speak in court about the impact that this has had on their life. This begs the question, “Can you place a value on losing friends?” The amount of compensation you will receive will vary depending on your case and how much the judge holds the defendant responsible for.

Limiting the amount of damages you claim

Even if you make a claim, you have to make an effort to minimize the amount of damages you want to be compensated for. This is especially true if you are partially responsible for what happened.

Let’s get into it. If your basement floods due to a water leak, you need to try cleaning it up on your own as soon as possible. Leaving standing water can cause mould growth. However, failing to dry out your basement is your fault. Therefore, you cannot suggest that the person who caused the flood has to pay to decontaminate your basement. You did not try to limit water damage on your own accord, and it is your responsibility to do so.

Someone else has to be at fault for you to get compensation

Civil liability means someone else has to be at fault for you to get compensated. In other words, if another person or company is not responsible for the damages, you cannot claim to be a victim of damages or injuries.

So, what does being at fault entail? Basically, one person has to harm another person, such as making a defamatory comment on the internet. However, someone will not be held responsible for a civil case if they did not cause this harm. For example, a person cannot open a civil case if they were the ones who didn’t repair a staircase when they were responsible for taking action.

Civil cases go to court, and who is at fault is determined by a judge. When determining if it is someone else’s legal obligation to compensate another, what a reasonable person would do is taken into account. Let’s go back to the previously mentioned examples. Could anyone have written a rude comment online, and would someone not take notice of the staircase in disrepair? Monetary damages will not have to be paid if either scenario or any other one is considered a reasonable act.

You might be partially responsible for the incident

Sometimes, multiple people can be held liable for an act. When this happens, more than one person is considered at fault, and responsibility is divided among them and this can include you. If you partially share responsibility for the incident, you will receive less compensation than if it was solely another person or company’s fault.

In the event that you have the burden of paying for a matter related to civil liability, you will want insurance. Not having any sort of insurance is a risk in itself, especially if you don’t have a life insurance policy because common car accidents can happen. Let’s learn some more about civil liability cases and how insurance can help.

Preventing civil liability

If you are being sued, you should know that there are ways to avoid civil liability. In some cases, you might not be at fault despite a civil case being opened. How does this work? This is done by proving the damages were caused by the victim themselves, a third party or another uncontrollable circumstance.

Now, this might sound overwhelming, especially when you’re under the scrutiny of accusation. However, we have included a few examples below to illustrate these situations:

• If someone acts without reason or attempts to cause an incident to receive compensation, they are responsible. For example, a person looking at a cell phone and not watching their child when something happens would be at fault.
• If you lose control and end up stepping onto a track to avoid hitting someone on in-line skates, the fault is deflected onto a third party.
• If bricks fall from a building during a tornado, it is considered an uncontrollable circumstance.
• If you see an icy sidewalk and you take a longer way around to avoid it and end up slipping, the city is not liable, even if there isn’t salt on it.

In order for a civil liability lawsuit to go through, there has to be proof that you or another circumstance were not at fault for the incident. Your best bet is to review local laws beforehand to determine your best course of action. Next, we will discuss insurance options you have in case you are on the receiving end of a civil liability lawsuit.

Civil liability and insurance

You have to follow the civil code when dealing with certain incidents. However, if you are the one at fault, it’s easy to lose control of the situation. Depending on what happened, you might get stuck paying a large amount of money out of pocket. How do you avoid this? Well, your best solution is to get an insurance policy to help compensate someone in the event that you or your business is responsible for an injury or property damage. It’s time to discuss various insurance policies and how they can assist you in dealing with civil liability cases. Continue reading to learn more:

General civil liability

General civil liability insurance provides coverage for incidents related to bodily injury and property damage. If someone sues you for either of these things, your insurance can help compensate them for these damages.

Having this type of insurance is helpful because it allows you to compensate customers or visitors to your place of business. Additionally, it covers if someone for your company is working off-site.

So, what does general civil liability insurance do for you? To keep things on the short side, it protects your assets. How much coverage you purchase will vary depending on how much risk you, your workers, and visitors are exposed to. Asking an insurance broker to assess the situation is your best bet.

Professional liability

Professional liability insurance, also called errors and omissions insurance, is helpful for a variety of companies. However, those who design and install products should have it to protect themselves from hefty lawsuits.

Opting into this policy is wise for those who don’t want their customers to lose time and money because of potential product defects. This can include if there is inaccurate advice or missing instructions that come with the products.

Umbrella liability

Umbrella or excess liability coverage does what basic coverage cannot. It provides extra insurance compensation to meet large-scale businesses. You should keep this type of insurance coverage in need if your business is considered high-risk and, therefore, more susceptible. An insurance broker can tell you if you fall into this category. Choosing this policy can give $1 million to $5 million of extra coverage.

Directors’ and officers’ liability

If you are a director at a for-profit or non-profit organization, you need a proper insurance policy. That’s because you can be held liable for acts you commit while performing your duties. Keep in mind that people in these roles are responsible for the following duties:

Duty of diligence

You have to act with good intentions when fulfilling your responsibilities.

Duty of loyalty

Those with such authority must place the interests of the organization above their own.

Duty of obedience

Everyone, even the directors of the organization, must follow applicable company rules and laws. If someone in charge of a business does not follow these best practices, they risk lawsuits. Examples include wrongful dismissal and income tax evasion. Having insurance will prevent people in power from having to pay for legal repercussions out of their own pocket.

Pollution

This type of civil liability insurance is only applicable to certain businesses. Not every sector will cause pollution, but when they do, it causes damage, and there can be serious trouble.

Pollution is a quick way to cause damage to property and people around your place of business. Air pollution can result in third-party property damage. If you own or lease your property and pollution damages, this insurance coverage can help you pay for the damages.

By understanding the types of civil liability insurance, you ask an insurance broker about which ones you should get for your business. Similarly to finding out your life insurance cost in Canada, you can ask your insurance company for an estimate on how much civil liability insurance will cost. You will also receive advice on personal claims along the way. Next, we will talk about the potential civil lawsuits people can file.

Common types of civil cases

There are many types of civil cases. It’s important to know what you’re dealing with, whether you are the one getting sued or the victim of an act. Let’s find out about the various types of civil cases and what they entail:

Personal injury claims

A personal injury claim can affect insurance, but it’s worth filing if you are the plaintiff who got injured as a result of a defendant’s actions. Before opening a case, ask a lawyer for personal injury claim advice. The arguments for these cases are based on negligence, intentional actions, or a strict form of liability. Be sure you have proof so you don’t have to cancel a personal injury claim, and if you are being sued, have personal injury coverage in place. Examples of these cases include getting hit by a car as a pedestrian, getting injured in a car accident, medical errors, fraud, other injuries, animal attacks and much more.

Contract disputes

Breaching a contract occurs when a person or company fails to fulfill its responsibilities. The plaintiff then asks for compensation because of the contract that both parties signed. Most cases revolve around business agreement violations and not delivering a paid purchase.

Equitable claims

In this situation, the victim of an action orders a person or company to temporarily or permanently stop performing it. Usually, the plaintiff requests a temporary or long-lasting restraining order against the defendant.

Class action lawsuits

If a group of people are seeking compensation for an action committed by an organization, it is called a class action lawsuit. These cases often relate to injuries or other forms of damage. The difficulty of these cases is the large sum of money involved. For example, a class action lawsuit may result from multiple customers suing a company due to a product causing injury.

Divorce and family law disputes

Divorce, legal separation, and custody are civil matters. The court will assist in breaking the union, sharing marital assets, and determining child custody and support. These cases are difficult, which is why you should have a lawyer help you with these issues.

Property disputes

Property disputes revolve around disagreements about property ownership and boundaries. When someone opens one of these civil cases, the court may agree to monetary compensation. Additionally, restriction orders will be applied to the trespasser.

Learning about various cases will allow you to understand the civil code better and show you what type of proof you will need to present your case. If you are the one who committed the action, you will want insurance because sometimes, the cost of compensation and hiring a legal team can add up. Although they don’t come with criminal charges, civil liability cases can financially strain a person.

Contact BrokerLink for all your insurance needs!

Civil liability claims are a big deal, so you should have insurance coverage in place. Not only will this help pay for damages you caused, but it will also assist you if you are partially responsible as a victim. Getting advice from a professional broker is the best way to navigate these cases for smaller claims, but we advise consulting a legal team for larger lawsuits.

It doesn’t matter what type of situation you’re in — planning ahead is a good idea. That’s why you should understand how life insurance works in Canada. Whether you’re determining how your life insurance will fit into your estate planning or need to learn more about selling your life insurance, we are here for you. What are you waiting for? Contact BrokerLink to find the right insurance coverage for your needs today.

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