“Defective products and work” is the largest cause of liability losses worldwide, while the rise of the digital economy will present new loss scenarios for insurers, according to Allianz Global Corporate & Specialty (AGCS).

Businesses lose more than €260,000 ($363,762) on average per case of faulty goods or work, which accounted for 23% of all claims paid by AGCS and other insurers between 2011 and last year. Collisions and crashes comprise 22%, followed by human error at 19%.

Rounding up the top 10 causes of liability loss are accidental damage caused by nature; slips/falls/falling objects; water/fire/smoke damage; environmental damage; natural hazards; vandalism/terrorism; and property damage.

The rapid growth of the sharing economy, digitalisation and new technologies such as driverless cars will present new challenges for insurers, AGCS says.

“Liability losses are ubiquitous and can range from minor incidents to major disasters, always causing third-party damage or injury,” Chief Claims Officer Alexander Mack said.

“The risk landscape for companies is constantly shifting, with liability risks on the rise globally. New technologies such as the Internet of Things, autonomous mobility or 3D printing will create fundamentally new liability scenarios… in almost every sector.”