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Cover: The insuring clauses
8.1 Events covered
Liability insurance provides cover in respect of the insured’s liability, usually for loss or damage to another person (the victim), and for which the insured is responsible. 1 The contingency that triggers the insurer’s obligation turns on the insuring clauses in the policy. This may be actual (financial) loss to the insured, the occurrence out of which that loss (liability to the other person) arose or, more commonly today, the making of a claim by a third party, the victim of the occurrence, against the insured.
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