What is Tort?
A tort is a wrongful act or an infringement of a right (other than under contract) that results in legal liability. In the context of personal and business insurance, torts are central to determining liability when someone is harmed due to negligence, defamation, or other wrongful acts. Torts can be intentional, where harm is deliberately caused, or unintentional, as in cases of negligence.
In property or car insurance, for example, tort claims may arise when an individual’s property is damaged due to the negligent actions of another. For instance, if a car accident occurs because one driver was texting while driving, the injured party may file a tort claim against the negligent driver to recover damages.
Torts also play a significant role in business insurance, where companies may face liability claims for harm caused by their products or services. If a company’s product causes injury, the injured party may pursue compensation under tort law.
In most insurance cases, proper coverage can help mitigate the financial impact of tort claims by covering legal fees and damages awarded to the affected party.