Insurance Liability
/ɪnˈʃʊərəns laɪəˈbɪləti/
Definitions
- (n.) The legal obligation of an insurer to compensate the insured or third parties for covered losses under an insurance policy.
The insurance liability arose after the claimant proved damages from the accident.
- (n.) The extent to which an insurance company is responsible for paying claims under the terms of a policy.
The company increased its insurance liability to cover potential claims from the recent storm.
Forms
- insurance liability
- insurance liabilities
Related terms
See also
Commentary
Insurance liability quantifies the insurer's responsibility and varies with policy terms; clarity in policy drafting is crucial to determine coverage scope and limits.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.