What is Legal Liability?

Being covered for the unexpected is one of the reasons we have insurance. But it isn’t just about protecting your property; it’s also about protecting yourself from unforeseen costs if you accidently cause damage to someone else’s property. If you accidentally cause damage to someone else’s property, you may be liable to pay for the damages.

See what happens in our example with Calamity Jane and an incident at the supermarket.

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1. Jane left the supermarket with her trolley full of her weekly grocery shop.

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2. While Jane was unlocking her car, the weight of her groceries…

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3. …and the car park's slight incline, caused Jane’s trolley to roll, quickly gathering momentum.

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4. The trolley skidded against an expensive-looking car, scraping the back panel and the driver’s door.

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5. Jane was worried. The cost of repainting the stranger’s car could cost thousands – which she just didn’t have.

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6. Luckily, Jane had Contents Insurance with AA Insurance, which included legal liability cover for loss to physical property, of up to $2 million.

Having legal liability cover in her Contents Insurance meant AA Insurance covered Jane’s liability for the cost of the car repairs and fixing the supermarket trolley.

The story, all names, characters, and incidents portrayed here have been provided for educational purposes only and are fictitious. No identification with actual persons (living or deceased), places or buildings is intended or should be inferred.

Application for cover is subject to underwriting acceptance. Limits, excesses, terms, conditions and exclusions apply to the insurance cover referred to. For full policy and benefit terms and conditions please go to aainsurance.co.nz/terms.html

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