Liability and Insurance Issues

Theodore A. (Ted) Feitshans

Extension Associate Professor

Department of Agricultural & Resource Economics

North Carolina State University

919-515-5195 taf@ncsu.edu

January 14, 2014

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used and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or for promoting, marketing or recommending to another party any

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Liability

Where does liability come from?

Contracts

IPRs

Torts

Strict Liability in Tort

IntentionalTorts

Quasi- IntentionalTorts

NegligentTorts

Duty

Duty to a Trespasser

Duty to an Invitee

Modification of Duty by Statute

Breachof

Duty

ProximateCause

Actual Damages

ContributoryNegligence

Waivers

Choice of Business Entity

Independent Contractors

Employment

Managing Risk Intelligently

The Risk Management Model

Risk identification

Risk Evaluation

• Low-Severity, Low-Frequency

• High-Severity, Low-Frequency

• Low-Severity, High-Frequency

• High-Severity, High-Frequency

Risk Treatment

Selection&

Implementation

ProgramMonitoring

WhatIs

Insurance?

Let’s talk terminology…

Premium

Rider

Policy

EVENT

CLAIM

Adjuster

Policy holder

Insured

Third-party beneficiary

Agent/Broker

Insurable Interest

Underwriter

Actuary

Reinsurer

Insurance NeedsDisability Products Liability

HealthLife: owner & key employees

Property/CasualtyLiability

Motor vehicleBusiness interruption

Motor Vehicle

Issues

Managing Your

Insurance

Read Your Policy!

Ask Questions!

Ask more questions!

Promptly notify your agent of claims!

Communicate with your insurance agent!

Use the resources that your insurance agent provides

Insurance Pays the Costs of Defense

CONCLUSION

N.C. Department of Insurance

For assistance in finding authorized insurance services in North Carolina:

– N.C. Department of Insurance http://www.ncdoi.comTo check the license status of an agent:

https://sbs-nc.naic.org/Lion-Web/jsp/sbsreports/AgentLookup.jsp

For help with unauthorized insurance:– 1-800-546-5664 Consumer services– (919) 733-7487 Agent services

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N.C. Department of Insurance

• For assistance finding insurance, regularly licensed companies and surplus lines:

• http://www.ncdoi.com/Consumer/Consumer_Business.aspx

• “This Program is designed to assist commercial insurance buyers in their efforts to obtain difficult-to-place commercial coverage. Agents and consumers can call 919-807-6750 or 800-546-5664 (toll free in N.C.) for assistance.”