Business liability insurance
According to Icelandic law, a person is liable for tort damages with respect to any harm which he/she causes others in a culpable and unlawful manner. This principle is called the culpa rule, and it is a basic principle of Icelandic law. If the person who is subject to a litigation claim for tort damages is not culpable, that person will generally speaking not be liable in tort.
The purpose of liability insurance is to pay indemnity for the insured person in the event that he/she has incurred tort liability, to the extent that the injured party will not have to cover his/her own loss or damage on account of shared culpability or shared accountability, and its purpose is also to pay the cost incurred by the insured party in case a tort claim is made against him/her. Because liability in tort is frequently a complex legal issue, the insured person has a duty to consult VÍS with respect to his/her legal position if he/she is presented with a claim for tort damages regarding injury for which he/she is believed to be culpable. At the same time, it is recommended that the insured person read the insurance contract terms with this in mind.
An admission of liability in tort by the insured person is only binding upon him-/herself, and not upon VÍS. By such an admission, the insured person, therefore, may incur a risk of personally having to pay tort damages for loss or damage that the business liability insurance policy does not cover.
Liability insurance for travel wholesalers and travel retailers
The insurance covers claims for compensation for loss or damage occurring during a package tour that begins during the period of insurance. The insurance covers loss or damage occurring during a package tour for one year after the beginning of the trip.
Loss or damage that issues from the insured’s liability, pursuant to the Act No. 80/1994 on Package Tours, due to accidents involving people or damages caused to items as the result of a deficient package tour that the insured has organised or sold. The insurance is an appendix to the insured’s business liability insurance and covers only events outside the scope of that insurance.