What does "tort" mean within the insurance framework?

In the context of insurance, a "tort" refers to a wrongful act or infringement that results in legal liability for damages. This concept is crucial for understanding how liability insurance operates. When someone suffers harm due to another person's negligence or deliberate actions, the injured party may pursue legal action for compensation. Tort law addresses these situations by defining the responsibilities and liabilities of parties involved in such wrongful acts. The role of torts in the insurance framework is significant as it lays the foundation for liability claims that insurance policies may cover.

In contrast, other options pertain to different aspects of insurance, such as contracts between insurers and insured parties, specific types of coverage, or agreements related to compensation for accidents. While these concepts are important within the broader insurance landscape, they do not encapsulate the legal implications of torts and their relationship to liability claims. Understanding torts is essential for adjusters as they assess claims related to personal injury or property damage resulting from the actions of others.