What is 'negligence,' which underlies most liability claims?

Negligence is the failure to exercise the degree of care that a reasonably prudent person would use under similar circumstances, which causes harm to another person or their property. It is the legal basis for most liability claims. To establish negligence, four elements are generally required: a duty of care owed, a breach of that duty, causation (the breach caused the harm), and actual damages. Liability insurance responds to claims arising from the insured's negligence. Understanding negligence and its elements is foundational to casualty insurance, because the coverage exists to protect insureds from the financial consequences of being found negligent.