What does Liability mean? Read on to discover the definition & meaning of the term Liability - to help you better understand the language used in insurance policies.
Liability is a responsibility or obligation that a party has or owes to another. In the context insurance, parties can be held "liable" for things such as injuries occurring to others, malpractice, negligence, and several other things. Liability insurance exists to protect people or companies from losses associated with liabilities that can occur as the result of lawsuits.
We hope the you have a better understanding of the meaning of Liability.