Commercial Liability Insurance
Liability Insurance is designed to cover compensation claims that may be made against you, as a business owner or your company, if others suffer damage due to your operations. This can include both property damage and bodily injury, often involving significant amounts.
The insurance is often referred to as Voluntary Liability Insurance, as it is not legally mandatory to purchase it.
Information regarding the insurance
What type of insurance is this?
Commercial Liability Insurance is intended to cover damage to third parties caused by the insured‘s business activities.
What is covered? | What is not covered? |
|---|---|
| The insurance covers: | The insurance does not cover: |
Claims for damages for physical injury or damage to property that can be traced to the insured‘s operations. | Damage to items owned by the insured alone or jointly with others. |
Liability that falls on the insured as the owner or user of a building used for their operations. | Damage to items due to fire. |
Product liability, i.e. when damage occurs due to the hazardous properties of products manufactured and sold by the insured. | Damage to items the insured has borrowed, rented, or are for other reasons in his possession. |
Contractual liability. |
Any limitations on what the insurance covers?
The insurance does not cover product liability for damages that occur abroad, unless specifically agreed upon.
Where is the insurance valid?
The insurance is valid in Iceland unless otherwise agreed.
What responsibilities do I have?
You must report any damage as soon as possible and no later than one year from the date of the damage.
You must report any damage as soon as possible and no later than one year from the date of the damage.
You must inform us of any changes in your address, telephone number, and email address.
You must follow the precautions in the terms of the insurance policy.
When and how do I pay the premium?
The premium must be paid on the due date. When the insurance policy is issued or renewed an electronic claim is created in your online bank. You have the option to distribute the premium payments by:
Credit card payment, where the premium is charged monthly to a credit or debit card.
Direct payment, where your bank account is debited monthly.
Corporate distribution, where the premium can be paid in monthly payments.
When does the insurance start and when does it end?
The insurance policy takes effect when an offer is accepted and is renewed annually until it is canceled.
How do I cancel the insurance?
Individuals and companies with fewer than five full-time positions can cancel the insurance at any time and it will expire at the end of the following month after the cancellation is received. Other companies can cancel their insurance one month in advance before the end of the insurance period.
The cancellation must be in writing, for example with an electronic signature.