Superquote Glossary / Definition: Liability

There are many definitions of liability applying to financial and legal fields in America and in Europe.

Generally speaking in the insurance world, liability can be defined as an individuals (or business) responsibility.  It is an amount that an individual or business (or insurer for that matter) is obliged to pay for something which they are respobsible (liable for)

Examples

If John has his motor insured comprehensively and has an accident which is insured under his policy, then his insurer is liable for the damage caused and is obliged to correct Johnback to the state he was in previously.

If John is a builder and a wall he built collapses, or an employee of Johns suffers an accident for which John or his business was responsible for, then Johns business is liable for the cost of compensating the client or his employee.

If you are looking for employers liability insurance or public liability insurance, follow these links.