Updated: 09 June 2023

What Does Tort Mean?

A tort is a wrongful act or the impairment of a right caused by the negligence of a person or any other act or omission that is not criminal in nature. In terms of insurance, liability insurance exists to protect parties being sued for committing a tort.

Insuranceopedia Explains Tort

Tort does not include a breach of contract, but it results in injury or damage to a person, another party’s property, or another party’s reputation. Intentional or negligent actions often lead to tort cases, and the injured person or party can receive compensation through an award for damages in a lawsuit.

A person accused of and found guilty of committing a tortious act must pay damages to the aggrieved person or party for the injury done. If the accused has liability insurance, the policy would help pay for defense costs and protect their assets up to the coverage limits, which may be essential, especially in instances wherein the accused has to pay for a lifetime to settle the case. If the accused does not have liability insurance, they would have to bear financial burden through their own means.

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