A tort is a civil wrong—an act (or failure to act) that causes harm or loss to another person and gives the injured party the right to sue for damages. Torts are the foundation of most liability insurance, because liability coverage exists to respond when a policyholder is accused of committing one. Unlike a crime, which is prosecuted by the government, a tort is a dispute between private parties resolved in civil court.

Why it matters

Most of the claims that liability insurance pays out are tort claims. When someone slips on your icy sidewalk, or your delivery driver rear-ends another car, the injured party's legal theory is almost always some kind of tort. Your policy promises to defend you and pay damages you become legally obligated to pay—and that legal obligation usually flows from tort law.

The main categories

• Negligence — carelessness that causes harm. This is by far the most common type and the engine behind auto and premises claims.
• Intentional torts — deliberate acts like assault, libel, or trespass. Note that liability policies usually exclude intentional harm.
• Strict liability — responsibility imposed regardless of fault, often for abnormally dangerous activities or defective products.

A simple example

A grocery store mops a floor but forgets to put out a "wet floor" sign. A shopper slips, falls, and breaks a wrist. The shopper sues the store. The legal claim is a tort (specifically negligence), and the store's general liability policy is what responds to defend the store and pay the damages.

Don't confuse it with…

A breach of contract is not a tort—it's a failure to keep a promise you agreed to in writing or by spoken agreement. Torts arise from duties the law imposes on everyone, not from a contract you signed. A single event can sometimes involve both, but they are separate legal ideas.

On the exam

Remember that tort is the broad umbrella and negligence is the most-tested branch under it. Expect questions distinguishing torts (civil) from crimes (criminal), and recognizing that liability insurance is built to respond to tort claims while typically excluding intentional wrongdoing.