Insurance, Liability and Damages in Colombia

Liability and Damage

Civil liability is the obligation to repair a damage that a subject causes to another with or without intent to cause it. The objective of the repair is to leave the damaged subject in the same situation as before the damage occurred or in a situation as similar as possible. Civil liability may be contractual (there is a contract between the parties) or non-contractual (there is no contract between the parties).

Insurance Law

There are civil liability insurance policies through which the insured transfers the economic risk of making reparation to a third party for damage caused to it. Liability insurance arose with the purpose of providing a guarantee both to the insured and to the victim who suffers the damage, covering material and personal damages. From the perspective of the insured, there is the guarantee that he will not be liable with his assets in the event of damage caused to a third party, while from the perspective of the victim who suffered the damage, there is the guarantee that he will be repaired independently of the assets of the party causing the damage.

In Colombia, it is mandatory for certain professions or occupations to have civil liability insurance:

• Builders, engineers and related professionals.
• Financial sector professionals.
• Physicians, nurses and allied health professionals.
• Entities dedicated to the realization of shows.
• Administrators of sports facilities.
• Travel agencies.
• Conveyor companies.
• Entities or self-employed persons engaged in the hotel or restaurant business.

The damages covered by these insurances may vary depending on the policy contracted and the conditions negotiated, but, in general, these insurances cover the following damages:

• Property damage: refers to assets such as buildings, vehicles, among others.
• Personal injury: refers to the damage suffered by the subject to his body and the damages arising therefrom, such as the cost of medical treatment.
• Economic damages: refers to damages such as business interruption or loss of income.
• Environmental damage: refers to damage caused to the environment, such as water pollution, where the insurance may cover clean-up and other related expenses.

Liability insurance is not covered, for any reason whatsoever, under the following circumstances:

• Damage caused to third parties intentionally.
• Criminal or delinquent acts.
• Damage to own property caused intentionally by the owner himself.
• Damage to third parties not related to the insured activity.
• Damages to third parties caused by non-compliance with the law.

In no case shall the insurers have coverage when any of the above situations arise.

The most widely used liability insurances are those for motor vehicle driving and construction. In addition, the liability insurances against which most claims are filed are those for driving motor vehicles, construction and health professions.

REFERENCES:

• Extracontractual Civil Liability Insurance. (n, f.). National Agency of Public Contracting – National Planning Department. https://www.colombiacompra.gov.co/ciudadanos/preguntas-frecuentes/seguro-de-responsabilidad-civil-extracontractual

• Viafina, S. (2023, January 12). What are the activities with Compulsory Civil Liability Insurance at the state level. Seguros Viafina. https://www.segurosviafina.com/blog/actividades-con-seguro-de-responsabilidad-civil-obligatorio-en-ambito-estatal#:~:text=La%20ley%20especifica%20especifica%20contratar%20el,Profesionales%20del%20sector%20financiero.

• Alfaro, J. (2018, September 25). Liability insurance. Law Warehouse. https://almacendederecho.org/el-seguro-de-la-responsabilidad-civil#:~:text=En%20sentido%20contrario%2C%20sin%20embargo,producidos%20dolosamente%20por%20el%20asegurado