“For potential claims against individuals, the existence of liability insurance is virtually an absolute prerequisite,” they write. “There is no tort liability, and no payment, without it.”Legal philosophers insist tort law is about righting wrongs and holding negligent parties—tortfeasors in lawyerspeak—accountable. However, the reality is many concepts of modern tort law developed in lockstep with the availability of insurance to cover claims. But there’s no question that the broad availability of liability insurance is what makes the U.S. tort business hum. Insurers have shaped modern tort law in their role as intermediaries with the duty to defend their customers in court but also the right to decide whether to fight or settle.

Source: Forbes February 03, 2024 08:27 UTC