Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is … externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability …

This is a survey of legal liability for accidents. Three general aspects of accident liability are addressed. The first … is the effect of liability on incentives, both whether to engage in activities (for instance, whether to drive) and how …-bearing and insurance, for the liability system acts as an implicit insurer for accident victims and it imposes risk on potential …

We survey the theoretical and empirical literature on the law and economics of liability insurance. The canonical … Shavell model predicts that, despite the presence of some ex ante moral hazard (care-reduction by insureds), liability … precautionary activities. We discuss the numerous features of liability insurance contracts that are designed to reduce ex ante …

Liability insurers use a variety of tools to address adverse selection and moral hazard in insurance relationships … prior literature to explore them in the context of five areas of liability and corresponding insurance: shareholder … liability, auto liability, gun liability, medical professional liability, and lawyers' professional liability. The goal is to …

Calabresi's theory of tort liability (1961) as a risk distribution mechanism established insurance as an objective of … tort liability. Calabresi's risk-spreading concept of tort has provided the impetus for much of the subsequent development … of tort liability doctrine, including risk-utility analysis and strict liability. Calabresi's analysis remains a powerful …

Using the best publicly available data on lawyers' liability claims and insurance – from the largest insurer of large … law firms in the U.S., the American Bar Association's Standing Committee on Professional Liability, and a summary of large … claims from a leading insurance broker – this article reports the frequency of lawyers' liability claims, the distribution …

insurers; weaken liability insurers' incentives to monitor providers; and diminish the (already modest) deterrent effect of …