In insurance terms, what is a "tort"?

A "tort" in insurance and legal terminology refers to a wrongful act that leads to civil liability. This means that if a person commits a tort, they can be held responsible for the damages caused to another party. This is a fundamental concept in personal injury law and liability insurance; when someone is injured or suffers a loss due to another person's actions, the injured party may seek compensation through a tort claim.

Understanding torts is crucial for insurance professionals, as they need to assess risks, determine coverage, and understand how liability is defined under different circumstances. Tort actions can encompass a wide range of incidents, from negligence (like a car accident) to intentional acts (such as defamation). Liability insurance often comes into play in these situations, as it provides financial coverage for those found liable for causing harm to others.

Other options do not accurately represent the definition of a tort. For instance, a type of insurance policy does not define a tort, nor does a lawful act with no consequences relate to the implications of wrongful acts. Additionally, referring to torts specifically in the context of property damage overlooks the broader scope of civil liability that includes personal injury and other forms of harm.