Criminal law is the category of law that applies to wrongful acts that society deems so harmful to the public welfare that government takes the responsibility for prosecuting and punishing the wrongdoers.
Crimes are punishable by fines, imprisonment, or, in some states, even death.
Civil Law is the category of law that deals with the rights and responsibilities of citizens with respect to one another. Civil law applies to legal matters not governed by criminal law.
Civil law protects personal and property rights. If some invades the privacy or property of another person or harms another’s reputation, the insured person may seek amends in court. Thus Civil law contributes to the welfare and safety of society.
Criminal and Civil Consequences of the Same Act
Criminal and civil law do not necessarily deal with entirely different matters. A particular act can often have both criminal and civil law consequences.
Elements of a Liability Loss Exposure
A liability loss exposure involves the possibility of one party becoming legally responsible for injury or harm to another party.
This section examines the following elements of a liability loss exposure: -
· The legal basis of a claim by one party against another for damages
· The financial consequences that might occur from a liability loss
Legal Basis of a Liability Claim
For an injured property to have a right of recovery from another party, some principle of law must create a link between the two parties. This link can appear in tort law, in contract law, or in statutory law. Any law or legal principle that establishes a relationship between the two parties can be the basis for a claim of liability.
Legal Basis of a Liability Claim
| A legal right of recovery Can be based on |
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| Torts |
Contracts Statues
Negligence International Absolute Liability Assumed Breach of No-Fault Workers
Torts Liability Under Contract Warranty Auto Laws Compensation
Laws
Liability Loss Exposures and Policy Provisions
