Channeling (insurance, legal)

All you want to know about Channeling (insurance, legal)

Legal channeling is the act of legally making one entity responsible for an event, and thereby dismissing other parties from liability for an event.

For example; the third part liability for nuclear power plants is often channelled to the operator of the nuclear power plant. Therefore, contractors, who work at a nuclear power plant, do not have to have insurance in case one of their employees causes an accident with third party damages as a consequence.

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