The Application of the Principle of Risk in Claims Settlement in Voluntary Business Liability Insurance in the Light of Case Law

Abstract

This article is an attempt to analyze the insured's liability for damages pursuant to art. 435 of the Civil Code in the context of voluntary business liability insurance. Above all, it is vital to lay down the criteria which decide about the application of the principle of risk while assessing the insured’s liability for damages.The establishment of the principle of the liability of the insured person points out the specific character of the insurance relationship in the business liability insurance contract in relation to the property insurance, as the insurer shall also assesses the legal situation of the insured person, in the light of the victim’s claims.This article explores the application of the principle of risk, according to which the insured entrepreneurs are liable and the criteria for its adoption. Besides, the roles and functions of the insurer and business liability insurance have been discussed in the context of formulating the liability rules of the insured.