LIABILITY INSURANCE
Duty of care definition
Duty of care is a legal obligation to avoid actions or omissions that could injure others or damage their property.
In practice, this means a level of care that people owe to one another in common law. The duty of care is intended to ensure that people’s actions do not injure others or cause damage to their property. If a person breaches the duty, they may be liable to pay compensation to those who suffer injury, loss, or damage as a result of that breach. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in liability insurance, claims handling and policy wording. It helps assess legal responsibility, claim response and protection against third-party or employee claims. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Duty of care is closely related to liability insurance, negligence, duty of disclosure and compensation. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Liability insurance, claims handling and policy wording.
- Purpose
- Helps assess legal responsibility, claim response and protection against third-party or employee claims.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- liability insurance, negligence, duty of disclosure and compensation.
Example of duty of care in liability insurance
A business owes visitors a duty of care to keep its premises reasonably safe. If it fails to do so and someone is injured, liability may arise.