Liability

Definition

  • In the simplest terms, liability is when an entity is legally responsible for something. Used in both civil and criminal law, a party found liable can be required to pay for damages or serve prison time if found criminally negligent.

Synonyms
legal liability, liable, onus, blame, legally obligated, obligation, accountability

Related Terms and Acronyms

  • Aggregate Limit of Liability Definition,
    • A restriction on the amount of liability an insured entity can place on an insurer in a specific time period.
  • Automobile Liability Insurance Definition,
    • Insurance coverage for damages caused in traffic collisions.
  • Causation Definition,
    • A method of connecting an entity's conduct with an effect, which in some cases can prove legal liability.
  • Contingent Liability Definition,
    • A legal responsibility to pay certain sums conditional on a future event such as a law suit or court case.
  • Employers Liability Insurance (ELI) Acronym,
    • Insurance purchased to cover businesses for liability from workplace accidents.
  • Exposure Definition,
    • How much liability an insurer takes on when they write an insurance policy.
  • General Liability Insurance Definition,
    • Insurance that protects individuals and businesses from a number of potential liabilities.
  • Homeowners Insurance Definition,
    • A policy that includes hazard coverage, covering loss or damage to property and/or assets located within, as well as coverage for personal liability and theft.
  • Injunction Definition,
    • A court order that prohibits a party from taking a specific course of action.
  • Insurance Attorney Definition,
    • An attorney who works with insurance law.
  • Joint Liability Definition,
    • The responsibility of two or more people to repay a debt
  • Liability Insurance Definition,
    • Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
  • Non-recourse Debt Definition,
    • A loan secured by collateral where the borrower is not personally liable.
  • Professional Liability Insurance (PLI) Acronym, Very Important,
    • Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
  • Reciprocal Insurance Exchange Definition,
    • A group of individuals, firms and corporations that mutually insure each other.
  • Specific Performance Definition,
    • A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
  • Statute of Limitations (SOL) Acronym,
    • A period of time specified by statute within which an action at law must be brought or else be forfeited.
  • Statutory Liability Definition,
    • Liability that is assigned by law and is not open for interpretation.
  • Tortfeasor Definition,
    • A party who commits a tort (a civil wrong).
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