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General liability insurance

Insure your business and third-party liability

Risks are inevitable. Every action or omission can pose a potential risk to third parties and their property. DDOR osiguranje protects your company if your activities cause damage to others.

Why is it important?

Our general liability insurance policy covers costs that you may incur as a legal entity or entrepreneur if you are held responsible for:

  • death, bodily injury, and deterioration of health,
  • destruction of or damage to third-party property.

DDOR osiguranje covers compensation costs on your behalf if you are legally liable for damages. This cover only applies to claims arising from your business activities, in line with insurance terms and conditions and within the limits set out in the policy, including certain restrictions and exclusions.

Benefits of general liability insurance 

  • Protects you against business liabilities and possible financial losses.
  • Ensures maximum protection for your business operations.
  • Demonstrates your corporate and social responsibility.
  • Builds trust and strengthens your company’s reputation.

Who is eligible and what risks are covered?

General liability insurance is designed for legal entities and entrepreneurs who may cause damage to third parties or their property in the course of their activities.

The insurance cover may include liability for the following reasons:

  • subjective liability (due to an error, negligence or omission on the part of the insured);
  • objective liability (regardless of who is at fault, if liability is prescribed by law or arises from the nature of the activity).

 

The policy only covers risks that are expressly defined in the Insurance Terms and Conditions, subject to certain restrictions and exclusions.

Risks covered by general liability insurance 

  1. Public liability insurance (property damage and bodily injury to third parties)
  2. Insurance of the employer’s liability towards employees
  3. Product liability insurance (damage caused by the use of products)
  4. Professional indemnity insurance (errors in the provision of professional services)
  5. Liability for pure financial losses (e.g. business interruption or third-party loss of profit)
  6. Liability for losses caused by pollution of water and soil
  7. Liability for losses arising from business activities or possession of assets 
  8. Liability for losses arising from the use, possession, rental or usufruct of real estate 
  9. Liability for losses arising from the use of elevators for the transportation of passengers and freight
  10. Cover of legal costs in connection with claims for damages. 

Note

Professional indemnity insurance is designed for clients who provide professional services or perform advisory functions where there is a risk of third-party damage due to negligence, error, incorrect advice or omission in the performance of their duties.

The National Bank of Serbia (NBS) requires professional indemnity insurance for certain occupations to ensure compensation for damages that professionals may cause to their clients.

Examples of professional indemnity policies include:

  • medical professionals,
  • lawyers,
  • architects,
  • accountants and auditors,
  • other occupations, as required by law.

Risk is always present – DDOR liability insurance packages

DDOR offers different liability insurance packages:

  • professional indemnity of medical professionals;
  • professional indemnity of lawyers;
  • professional indemnity of architects;
  • professional indemnity of accountants;
  • liability of residential community managers;
  • liability of bankruptcy administrators;
  • liability of retail space lessees in shopping malls;
  • liability of recycling centers.

 

With liability insurance, you not only protect your business, but also show responsibility towards customers, employees and third parties, promoting security and trust in your work.

You're liable even when you're not aware of it

Liability can be subjective or objective, depending on the legal basis.

  • Subjective liability – arises when the insured is at fault, i.e., the damage results from his negligence, error or omission. 
  • Objective liability – exists regardless of the insured’s fault, especially in cases involving dangerous activities or objects.

 

You can be objectively liable without knowing it. Lack of awareness does not exempt you from liability! 

The principles of liability arise from the Law of Contracts and Torts and the legal framework in which you operate. Court practice often favors the weaker party, especially in cases involving bodily injury to third parties, such as individual citizens.

Even if you did not take any action, you can be held liable if you failed to prevent damage. Inaction or insufficient care can create a dangerous situation that poses a risk to others.

Additional service from DDOR – legal protection

With this additional service, DDOR takes over the legal disputes on your behalf, provides legal defense against unfounded or excessive claims against you, and covers the costs of legal proceedings. This helps you to protect your interests and reduce the financial risks associated with potential legal proceedings.

Limitations of liability and exclusions from insurance

Liability for damages is not absolute – there are legal grounds that may lead to a partial or total exemption from liability, as well as certain situations that are not covered by insurance. Understanding these rules is crucial for legal and financial protection and helps to avoid unnecessary disputes and unexpected costs. 

 

Exemption from liability (Art. 177)

  • (1) The owner shall be exempt from liability if he proves that the damage is due to a cause external to the property, the effects of which could not have been foreseen, avoided or prevented. 
  • (2) The owner shall also be exempt from liability if he proves that the damage was caused exclusively by actions of the injured party or a third party which he could not foresee, avoid or prevent. 
  • (3) If the injured party has partially contributed to the damage, the owner shall be partially exempted from liability.
  • (4) If a third party has partially contributed to the damage, such third party is jointly liable with the owner, but must pay for the damage in proportion to his/her fault.
  • (5) A person acting on behalf of the owner in the use of the property shall not be considered a third party.

 

Main exclusions from insurance as specified in Insurance Terms and Conditions 

  • Intentional damage; 
  • Keeping or using motor vehicles, aircrafts or vessels subject to compulsory insurance;
  • Losses caused by willful breach of regulations;
  • Losses caused by occupational diseases of the insured’s employees;
  • Losses caused by business interruption, loss of profit, etc.

FAQ

  • What does liability for pure financial losses mean?

    Liability for pure financial losses refers to situations in which your actions or omissions cause financial loss to a third party without damaging their property or affecting their health. For example, if construction work on your property causes damage to a major pipeline and disrupts the power supply to neighboring businesses, you would be liable for their losses due to the interruption of production.

  • Does the insurance cover pollution-related losses?

    Yes, third-party liability insurance also covers liability for losses caused by pollution of water and soil, provided that the pollution was caused by your business activities.

  • Who covers the legal costs in the event of a dispute?

    All legal costs are covered by the insurer, so you don’t have to worry about additional financial burdens in the event of a legal dispute.

  • How does the insurance protect my business?

    With professional indemnity insurance, your business is protected against potential claims arising from unintentional errors or omissions in your work. This insurance helps to prevent significant financial losses and ensure the stability of your business.

  • How does this insurance policy affect my company's reputation?

    By taking out general liability insurance, you demonstrate professionalism and responsibility in your work. This helps you to build trust with your clients and business partners and to make sure that unintentional errors don’t jeopardize your business and financial security.

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