General Liability Insurance Ratemaking

Liability insurance is designed to protect an individual against the possibility that he will be held responsible in a court of law for injury to another’s person, property, or other interests. The property owner is held responsible for accidents happening on his property if negligence can be established or legal liability exists by statute. Similarly, the contractor is held responsible for accidents that result from his operations, and the manufacturer for accidents arising from the use of his product, while the professional may even be held liable for the advice he gives. The insurance for these diverse forms of liability is provided by several lines of insurance which are generally grouped together under the title "Liability Other Than Automobile," or "General Liability Insurance." Manuals of rules and rates for general liability insurance are published by the National Bureau of Casualty Underwriters by the Mutual Insurance Rating Bureau, and by several independent insurance companies. These rules and rates are also the basis of the liability rates appearing in the multi-peril manuals published by the Multi-Line insurance.