liability

This is an extract. Please read the entire policy to get the full picture (spanish version only). Following are the coverages available. Within certain rules, you can select the coverages you need and pay for the ones you get.

I.N.S. LIABILITY INSURANCE

WHY?

The purpose of a Liability policy is to protect you against lawsuits stemming from accidents occurring in the insured premises or during an insured activity.  IMPORTANT: INS will not pay a Liability claim on your say-so - there must be a Court ruling and award.

WHAT DOES THE POLICY PAY FOR?

Amounts determined by the Law Courts of Costa Rica to be paid to third parties (other people) in compensation for accidents causing personal injury, death, or property damage or loss. Policy can also cover legal costs if the Court rules that they should be paid by the insured.

WHO CAN GET INSURANCE?

Anyone: homeowners, tour operators,  hotels,  restaurants,  shops, food manufacturers, etc. Policy is based on a certain activity or premises, and if it foreseen that an accident may occur to a guest, consumer or client, a Liability policy may be advisable. 

WHAT ARE THE COVERAGES?

Two coverages are available:
Coverage A - Injury, loss of life and limb.
Coverage B - Damage or loss of property.
You can have separate limits for coverage A and Coverage B, but the usual is a Combined Limit, where INS will pay up to the insured limit, per accident, regardless of the breakdown of the award.

HOW MUCH INSURANCE?

Try to visualise a worst-case scenario of what could happen in an accident: that is the recommended limit. Take into account, however, that in Costa Rica awards have not got out of hand, as in other countries, in regard to punitive damages, pain and suffering, deep pockets, etc. 

HOW MUCH DOES A POLICY COST?

The premium is a percentage of the insured amount, usually around 2% per year. The exact rate is fixed by INS on a case basis, per the perceived risk as described on the policy application, which has to be filled out by the Agent when visiting the premises.  It is usual, also, for INS to send an inspector, before establishing the rate, to interview the applicant and corroborate the information on the application.

01/08