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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Gross Negligence
Gross negligence occurs when someone violates the duty of care required in (business) transactions to a particularly serious degree—in other words, when they do (or fail to do) something that should have been obvious to anyone. In contrast to simple negligence, in cases of gross negligence, clearly recognizable misconduct is sufficient to be held liable for any damage caused.
Example:
A web designer stores sensitive customer data unencrypted on a publicly accessible server – even though they are aware that this poses a significant security risk. If this results in a data leak, gross negligence is deemed to have occurred.
Significance for liability
Gross negligence can lead to full liability – even if liability limitations have been agreed in contracts. Many clients explicitly exclude contractual liability limitations for damages caused by gross negligence. For self-employed persons, freelancers, and agencies, this can quickly threaten their livelihood.
Gross negligence in exali's professional liability insurance
All professional liability insurance policies through exali cover both slight and gross negligence. This also applies to legal violations, such as infringements of copyright, competition law, licensing law, or data protection law (GDPR). With other insurance companies, damages caused by gross negligence are often excluded from insurance coverage.
Term: Gross Negligence
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