How To Protect Your Assets From Damages With The RCT Policy

The RCT policy (civil liability towards third parties) allows you to protect yourself from all those situations which, due to damage caused to third parties, affect your assets. This type of insurance policy covers assets in different situations: from private life (for example the head of the family for damage caused by their children or pets) to professional life (for damage caused during the performance of their work duties).

RCT insurance is a policy that protects the insured assets when this is in the position of having to pay compensation for accidental damage caused to another party (the so-called "third"). Also in this case, the contours of this type of protection are outlined by the Civil Code according to which Article 1917 the insurance company is required to cover the damage caused by the insured for the time provided for in the contract of the RCT policy, with the exception of those resulting from malicious acts.

For more information please visit: www.insuranks.com/candle-making-insurance

What are the damages covered by the RCT policy?

Damage is a central aspect when it comes to civil liability towards third parties and it is therefore essential to know the legal features relating to the liability policy.

• Damage to property which can be total or partial provides for compensation such as to be able to replace or repair the damaged object as well as to compensate for its non-use and the decrease in its value
• Personal injury means temporary or permanent disability or death
• The pecuniary damage is identifiable in the damages inflicted on the property sphere of the subject and the civil code distinguishes between emerging damage (current damage) and loss of profit (future damage, loss of earnings, loss of opportunity)
• Lastly, non-pecuniary damage concerns the psychic sphere of the person who suffers it and this case envisages, for the purposes of compensation, that such damage is determined by an unlawful act punishable by law.

 Civil Liability to Third Parties covers involuntary damage caused by oneself and loved ones

The Civil Liability Third Party is an insurance in favor of themselves and not the third, as designed to protect the assets of the person signing the policy and is a life insurance, or against the reduction of the insured's assets in case of damages to third parties.

As mentioned initially, the RCT is applicable in private and professional contexts. As for the former, the policy covers involuntary and unexpected damage caused by close family members, pets and domestic staff.

The  professional RCT, finally, is applicable in cases where the damage caused involuntarily and for which compensation has been caused during the professional / business activities. An example of a third party liability is that for companies which covers damages for injury, death, destruction or damage to other people's property and claims coverage.

Who is not considered a "third party" for the RCT policy

When signing an RCT policy it is important, as with any contract, to know all the clauses and margins of applicability. In the specific case we are analyzing, it is important to know which are the so-called "third parties" excluded from this insurance:

• All related relatives and those who are in the condition of cohabitant of the insured such as spouse, cohabitant, children, parents, etc.
• The partners of srl, administrators, legal representatives and their families

Other cases of exclusion from insurance for damage to third parties

Third party liability insurance is not applicable for those risks that are normally covered by other types of policies, such as motor liability insurance. Another exclusion may concern the territory of applicability : in fact some geographical areas are not always covered by these types of policies (generally the most frequent exclusions concern Canada, the USA and Mexico).