Absolute Liability

Absolute liability is coverage that is valid even in the event of a fraudulent act of the insured with respect to payment of a wronged third party. The insurer after paying the third party may seek recovery from the insured.

An example of Absolute liability is an accident when the driver of a vehicle is impaired. The minimal amount of coverage, usually $200,000 is available for public liability and property damage even though the driver was drunk.

If you have suffered a loss then you should be reporting it to your insurance company. Often this is done through your agent or broker. The adjuster for your insurance company oversees the claim and should provide you with the information you need. If you have questions call your agent or broker.