No-fault Insurance

No-fault insurance pays out even if the policyholder has not acted culpably. This means that insurance cover applies without the need to prove fault (e.g. through negligence or intent). The insurance therefore pays out as soon as damage has objectively occurred – regardless of whether the insured person caused it or was at fault.

Another term for this is strict liability. It often comes into play where there are particular risks – e.g., for vehicle owners, animal owners, or in the case of certain operational hazards.

Examples of no-fault insurance

• Motor vehicle liability insurance: Pays out even if you are not at fault, because the owner is liable simply by operating the vehicle.
• Pet owner liability: If a dog injures a passerby, the owner is liable even if they have not violated any obligations.
• Product liability insurance: Companies are liable for damage caused by their products – even if they have not made any mistakes.

Professional Indemnity & Fault

Professional liability insurance – as offered by exali – usually involves fault-based liability: The insurer checks whether a mistake (e.g., due to negligence or a breach of duty) has been made.

However, the exali policy also applies in cases where the question of fault is unclear, for example, if a customer demands compensation but it is not clear whether the policyholder has actually acted culpably. This is where passive legal protection comes into play: the insurance company defends against unfounded claims – in court if necessary.

Importanance for companies

In the IT, e-commerce, consulting, and media sectors in particular, claims for damages often arise even without clear fault—e.g., due to technical glitches, misunderstandings, or external disruptions. With the right professional liability insurance with optional public liability insurance, both fault-based and certain no-fault risks can be covered.