Absolute Liability

What Does Absolute Liability Mean?

Absolute liability is imposed on a person or company engaged in a hazardous or potentially dangerous business, holding them accountable for harm or injury caused to another person or property due to negligence, an act, or an omission. Due to the nature of this liability, no proof of fault or negligence is required to hold the person or company liable.

Absolute liability is also referred to as strict liability.

Insuranceopedia Explains Absolute Liability

Because liability is imposed regardless of fault or negligence, many insurance companies do not offer absolute liability insurance. However, a few companies provide limited coverage at very high premiums. Standard general liability insurance usually excludes losses tied to inherently dangerous operations, which is why business owners with this kind of exposure often have to look at specialty markets. In cases of absolute liability, the offender cannot use defenses such as due diligence or mens rea (guilty mind). Examples of individuals or companies with absolute liability include owners of pools and wild animals, as well as sellers of explosives and firearms. Operators in those categories also tend to carry a commercial umbrella insurance policy on top of their primary coverage to handle claims that go beyond standard policy limits.