What does negligence refer to in the context of insurance?

Negligence in the context of insurance specifically refers to the failure to use reasonable and prudent care, resulting in harm or damage to another party. This concept is foundational in liability claims and is assessed by determining whether a person's actions met the standard of care expected in similar circumstances. If an individual fails to act as a reasonable person would, and that failure leads to harm or injury, they may be held legally responsible for negligence.

In the insurance realm, understanding negligence is crucial because it influences how claims are evaluated and determined. Insurers often investigate whether negligence was a factor in an incident to determine liability and the outcome of a claim. For example, if a driver fails to obey traffic signals and causes an accident, that driver may be deemed negligent, which can lead to liability for damages.

The other options touch on different legal concepts. The intentional act of causing harm directly pertains to torts such as assault or intentional infliction of emotional distress, and does not categorize under negligence which is non-intentional. Strict liability refers to a legal standard where a party can be held liable for damages without proof of negligence or intent, and is often applied in cases involving inherently dangerous activities, rather than general negligence. Finally, the ability to recover from all losses does