Infringement principle
The infringement principle is a term used in the insurance industry .
The so-called infringement principle applies to financial loss liability insurance. According to the infringement principle, the insured event occurs with the professional error / mistake that triggers and entails the liability claim . This is the case with architects and engineers , for example . This may result in gaps in coverage. The consequence of this is "extended liability": the insurance company protects its policyholders beyond the term of the insurance contract, as it is not unlikely that damage will only be discovered years after the cause or become effective. The extended liability for certain professional groups can be limited to 30 years or another period.
With other insurances, however, the insured event only occurs when the damage occurs or the damage is claimed by the injured party.
Web links
- Thomas Seemayer: The concept of an event in excess loss contracts in reinsurance. P. 27, online .