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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Liability to recourse
A party is liable to recourse if, following damage, it is obliged to reimburse a third party for services already rendered by that third party. The obligation to pay compensation arises when one party can be held responsible for damage that was initially borne or settled by another party.
In insurance law, this means that if an insurance company has paid for damage, it can seek recourse from the actual perpetrator in order to recover all or part of the costs.
Typical situations in which someone becomes liable for recourse
- Errors in project chains: A main contractor settles a claim with the end customer and then recovers the amount from the subcontractor who caused the error.
- Insurance benefits: A business liability insurance policy pays for damage and recovers the money from the actual party responsible (e.g., a freelancer).
- Product liability: A retailer is held liable for a defective product and recovers the costs from the manufacturer.
Recourse liability and professional liability
Exali's professional liability insurance protects against the financial consequences of recourse liability. It covers:
- The examination of claims (whether the recourse claim is justified)
- Payment in the case of justified claims
- Defense against unjustified claims (passive legal protection).
This is particularly relevant for freelancers, agencies, and subcontractors who are involved in complex project structures.
Term: Liability to recourse
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