General Third Party Liability Insurance (GTPL)

General third party liability insurance can be purchased by both individuals and companies. There are more than 30 professions in Latvia for which general or professional third party liability insurance is compulsory, but it is also available on a voluntary basis for companies operating in other sectors. For example:

• producers and distributors of food products and caterers, protecting themselves against losses if their products cause harm to the health of third parties;
• manufacturers and distributors of parts and components, insuring themselves against possible damage to the final product;
• event organisers, against accidental damage to event attendees;
• property managers, insuring their acts or omissions that may cause damage to the building owner;
• dry-cleaning service providers and cleaners in the event of damage to an object or damage to the health of third parties;
• owners of hotels or guest houses, against accidental damage to the health or property of their customers;
• owners of car repair shops or car washes, against damage to their customers' property when leaving their car for a service;
• other traders or private individuals.

General third-party liability insurance covers various risks arising from the acts or omissions of an enterprise or its employees. The most common risks are:

• damage to the life or health of a third party;
• temporary or total disability;
• direct financial loss;
• damage or destruction of property;
• expert costs;
• damages relating to the death of a third party.

Cover may be supplemented by various additional risks such as:

• moral damages;
• damage to the environment;
• loss of profit or income;
• damage to or loss of documents, etc.

For private individuals, a GTPL policy is also possible and recommended, as it also provides financial compensation for accidental damage caused by the client to a third party or their property, such as:

• a leak in a neighbour's flat;
• a pedestrian or cyclist;
• damage to a tenant's belongings in a property you own;
• damage to property you rent;
• accidentally knocked over an item in a shop;
• when carrying out repairs or construction work on your property;
• damage caused by your pet;
• damage caused in the pursuit of amateur sporting activities and hobbies;
• minor children's third party insurance is also included.

Compensation for damage to a third party is not payable in the following cases:

• if the damage was caused deliberately and with malicious intent;
• if the damage was caused while travelling in a vehicle by road, water or air;
• if the loss is related to unpaid or overpaid taxes, fines imposed by state or local authorities, legal interest;
• if the person who caused the damage was under the influence of alcohol, drugs or psychotropic substances;
• if false information has been given about the circumstances of the accident;
• if the damage was caused by an act other than those specified in the insurance contract;
• if the loss is caused by force majeure
• etc.

Important! When concluding an insurance contract, read the terms and exclusions carefully.

If an insured event occurs, you must inform the insurer as soon as possible and fill in an application for compensation. If requested, you must submit additional documents so that the insurer can assess the event and decide on the amount of the indemnity.