Understanding Liability Insurance in Poland: Legal Obligations and Practical Implications
- giuliapedrinivisio
- Jul 22
- 5 min read
Updated: Jul 24
Author: Zuzanna
In Poland, liability insurance is a key instrument to ensure both financial and legal security. This insurance is designed to keep you safe in case you inadvertently cause harm or damage to another person, whether you are a business owner, doctor, landlord, or simply an individual going about your daily life. Polish law with regard to civil liability imposes a number of obligations and requirements, and one of the most prudent strategies to prepare for future legal issues is to purchase such insurance and familiarize yourself with the applicable rules.
The Legal Framework
The Polish Civil Code, as the basis for liability insurance, regulates liabilities, damages and the concept of fault. According to Article 415 of the Civil Code, anyone who causes harm to another person is responsible for repairing the damage. This is the general basis for civil liability. However, the law also provides for statutory obligations in specific industries. Certain professionals, such as doctors, lawyers, architects, and notaries, are required by law to have professional liability insurance. These obligations are regulated in separate acts that govern each profession.
For example, medical professionals are subject to the Act on the Medical Profession, which clearly states that having liability insurance for doctors is mandatory. Similarly, legal advisers and attorneys must carry insurance under the terms set by their professional chambers. In addition to these specific laws, the Financial Supervision Authority (KNF) oversees insurance companies and the overall compliance of insurance products in Poland.
It is important to distinguish between mandatory and voluntary liability insurance. Mandatory policies are required by law in certain sectors, while voluntary insurance is an option for individuals and businesses who wish to protect themselves even when the law does not force them to do so. For example, a small business owner may choose to purchase general liability insurance even if there is no legal requirement, simply to protect the company against possible lawsuits from clients or third parties.
Types of Liability Insurance
There are several main types of liability insurance commonly used in Poland. The most general form is civil liability insurance, which covers damage caused unintentionally to another person or their property. This can be useful for individuals, for example in the case of accidents involving pets, bicycles, or property rented to others.
Another important category is professional liability insurance, which is essential for professions where mistakes can result in serious consequences. Doctors, lawyers, notaries, architects, and auditors are all subject to this form of coverage. If a doctor makes a medical error or a lawyer gives negligent advice, the insurance will help cover the resulting damages and legal costs. Many of these policies have minimum required coverage levels set by law.
Employer’s liability insurance is particularly important for businesses with employees. It helps protect employers from claims made by workers for accidents or illnesses that occur in the workplace. Although Poland has a public accident insurance system through ZUS (Social Insurance Institution), private employer’s liability policies can cover situations not handled by public schemes.
Another area where insurance plays a big role is product liability. Manufacturers, importers, or sellers can be held responsible if a product they introduce to the market causes harm or damage. A product liability policy can help a business handle claims without collapsing financially.
Policy Coverage and Exclusions
When buying a liability insurance policy in Poland, it is important to understand what is actually covered. A typical policy will include coverage for legal defense costs, damages awarded by a court, out-of-court settlements, and sometimes even loss of income due to litigation. However, every policy comes with exclusions. Common exclusions include damages caused intentionally, damages resulting from illegal activities, and liabilities related to nuclear risks or war.
Another important element is the limit of liability, which defines the maximum amount the insurer will pay. In mandatory policies, this amount is often specified by law. For example, a doctor may be required to have coverage of at least 75,000 euros per claim. In voluntary policies, clients can often choose different limits depending on the size and risk of their activities.
Claims Process and Legal Procedures
If a claim arises, the insured party must notify the insurance company as soon as possible. In Poland, the insurer then starts a process of investigation and decides whether to accept or reject the claim. This includes gathering documents, witness statements, and other evidence. If the insurer accepts liability, it will pay the third party or settle the claim.
Under Polish law, claims must usually be filed within a specific period. This is known as the statute of limitations. For most civil claims, the standard limitation period is three years, although this may vary depending on the case. If a dispute arises, the case may go to civil court, where the court decides on the amount of compensation. The insurance company may also become directly involved in the proceedings, especially when the third party is seeking compensation directly from the insurer.
Examples from Case Law
The usefulness of such insurance is best illustrated by the example of a situation that occurred at one medical facility. A private medical facility was held liable for an injury sustained after surgery in one of the cases that was settled by a Polish court. Thanks to such professional liability insurance, not only was the clinic able to avoid bankruptcy, but also the insurer was able to make a substantial settlement payment to the patient. In another case, a construction company was found liable for a collapsed wall that injured a passerby. Their general liability insurance covered legal defense costs and paid the damages awarded by the court. These cases show how critical proper insurance coverage can be in reducing legal and financial risk.
Tips for Choosing a Policy
When choosing liability insurance in Poland, it is important to assess the size and type of business covered. Companies should assess their exposure to risks associated with their work, products or employers. A certified insurance broker should be consulted who can explain the many alternatives and exclusions. Legal advice may also be helpful, especially when negotiating the terms of a large policy. In addition, insurance is just one element of risk management. Good internal procedures, staff training, and legal compliance all help reduce the chance of a serious claim.
Conclusion
As mentioned earlier, liability insurance is a key part of modern legal protection for Poles and law firms. This is quite an important topic, so even if it is not legally required, insurance provides significant protection against unforeseen lawsuits and financial losses, so it is worth thinking about.
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