Strict Liability

What Does Strict Liability Mean?

Strict liability is a legal standard that holds a party fully responsible for damages, regardless of whether they are at fault. It typically applies in criminal, corporate, and tort law, and can arise when the party creates or enables a dangerous situation. If this situation leads to damages, the party becomes liable.

For example, if a person buys a wolf as a pet, they may be held 100% responsible if the animal injures someone, even if the owner took every possible safety precaution and the injury occurred because the other party acted irresponsibly. Ultimately, the wolf owner is held strictly liable for owning such a dangerous animal.

Insuranceopedia Explains Strict Liability

Regular insurance policies typically do not cover losses resulting from strict liability situations. These damages are excluded because the insured has placed themselves in a high-risk scenario, where they are much more likely to face and lose a lawsuit.

For example, standard homeowners’ policies often do not cover liability if the insured owns a dangerous animal, stores explosives at their home, or has a pool. This is why homeowners insurance and dog bites is such a common question, since many insurers restrict or refuse coverage for specific breeds considered high risk. If the insured wants coverage for these risks, they would need to purchase additional coverage. When comparing the best homeowners insurance companies, it’s worth asking each one how they handle liability exclusions for pets or other higher-risk features of the home. However, some strict liability situations are so risky that the insured may not be able to obtain insurance.