exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
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Continuing Obligation
A continuing obligation is an obligation that is not based on a one-off performance and consideration, but on recurring performance over a longer period of time.
An insurance contract, for example, is a continuing obligation. Other examples are: Employment contracts, loan agreements or license and usage agreements.
No-fault Liability Through Continuing Obligation
A continuing obligation can also result in strict liability, for example in the case of service level agreements in the IT area. This means that you can be held liable for any damage caused through no fault of your own. This can be the case, for example, with maintenance or service contracts in IT. Example: As an IT service provider, you are tasked with building the IT network of a start-up. To do this, you use third-party software that doesn’t work properly later, which causes financial damage to the start-up. You are now responsible for this damage, although you are not responsible for the faulty software.
Many insurers do not accept no-fault liability (or strict liability). However, no-fault liability is also insured in Professional Indemnity Insurance for Digital Professions from exali.com.
Term: Continuing Obligation
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