Civil Code

What Does Civil Code Mean?

The Civil Code is a collection of statutes and laws governing lawsuits related to negligence and other business matters. In the context of insurance, it often addresses negligence and liability issues, which are common subjects of lawsuits involving insurers or policyholders. Businesses commonly buy general liability insurance to cover the kinds of negligence claims the Civil Code is used to resolve.

Insuranceopedia Explains Civil Code

Negligence is relevant in many business scenarios, with one of the most significant being healthcare. Healthcare providers must avoid negligence to prevent harm to their patients. To protect themselves, they typically carry malpractice insurance in case they are sued for negligence. The Civil Code is used in these lawsuits to help determine the defendant’s level of liability. Professionals outside of medicine, such as accountants and architects, often buy professional liability insurance for the same reason. It pays out when clients accuse them of negligent work, the type of claim civil codes are typically used to resolve.