Liability Insurance
/ˌlaɪəˈbɪləti ɪnˈʃʊərəns/
Definitions
- (n.) A type of insurance that provides protection to individuals or businesses against legal liabilities arising from claims of negligence or harm to other parties.
The company purchased liability insurance to cover potential lawsuits from customers.
- (n.) Insurance coverage that pays for damages or legal costs if the insured is found legally responsible for injury or property damage.
Her liability insurance covered the medical expenses after the car accident.
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Commentary
Liability insurance is foundational in risk management, typically excluding intentional acts; drafters should specify covered liabilities precisely.
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.