Idaho Property and Casualty Practice Exam 2025 - Free Practice Questions and Study Guide

Negligence refers to a situation where an individual or entity fails to take reasonable care to avoid causing injury or losses to another person. In the context of liability coverage, it is defined as a failure to exercise the level of care that a reasonable person would under similar circumstances. This concept is critical in determining whether a party can be held liable for damages that result from their actions or inactions.

For example, if a driver does not stop at a red light and causes an accident, that driver may be found negligent because a reasonable person would have followed traffic signals and exercised caution while driving. Liability coverage in insurance policies often addresses scenarios that involve negligence, as insurers need to assess whether or not their policyholders’ actions were negligent in order to determine coverage for claims that arise from such incidents.

The focus of negligence is on the absence of reasonable care rather than intentional harm or adhering to policy guidelines, which distinguishes it from other concepts such as deliberate acts or policy violations. Thus, recognizing negligence is essential in the framework of liability insurance as it sets the foundation for claims related to unintentional harm to others.