Liability Insurance


  • An insurance policy that covers the losses and damages resulting from an insured entity's legal responsibilities or negligence. For example, liability insurance can be used to cover liability resulting from a customer slipping on a patch of ice on a business' premises. Also known as "third party insurance."

third party insurance

Related Terms and Acronyms

  • Automobile Liability Insurance Definition,
    • Insurance coverage for damages caused in traffic collisions.
  • Consignment Insurance Definition,
    • Insurance for assets on loan, consignment, in transfer of ownership, or up for auction.
  • Employers Liability Insurance (ELI) Acronym,
    • Insurance purchased to cover businesses for liability from workplace accidents.
  • General Liability Insurance Definition,
    • Insurance that protects individuals and businesses from a number of potential liabilities.
  • Indemnity Definition,
    • An arrangement where one party assumes liability for another party.
  • Insurance (insur) Abbreviation,
    • An arrangement where one party provides financial protection to another party for specific damages or losses.
  • Insurance Institute of America (IIA) Company,
    • An organization in America for developing curriculums, administrating examinations and providing certification programs for professionals in various insurance industries.
  • Insurance Institute of Canada (IIC) Company Est. 1899, Canada,
    • A group of insurance professionals who work together to provide education and training programs, professional development, and networking for students and insurance professionals.
  • Insurance Proceeds Definition,
    • The benefits received by an individual after a claim has been verified.
  • Joint Liability Definition,
    • The responsibility of two or more people to repay a debt
  • Liability Definition,
    • A situation where one party is found to be legally responsible for something.
  • Loss Payable Clause Definition,
    • An insurance policy provision for payment of a claim to someone, other than the insured's interest in the insured property. This clause basically allows an insurer to make payments to a third party in certain circumstances.
  • Malpractice Insurance Definition,
    • Insurance that covers professionals from liability due to their own negligence or intentional harm.
  • Personal Lines Definition,
    • Property and/or casualty insurance policies of individuals or whole families.
  • Policy Definition,
    • An insurance contract.
    • A set of rules or guidelines.
  • 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.
  • Tortfeasor Definition,
    • A party who commits a tort (a civil wrong).
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