Liability Insurance

Business, Legal & Accounting Glossary

Definition: Liability Insurance



What is the dictionary definition of Liability Insurance?

Dictionary Definition


Compensation to third parties who are injured or whose property is damaged due to the fault of the insurance holder. You may have liability insurance for your car or your home, or to cover actions you take in the course of your profession. Liability polices are sometimes called “third-party policies.”


Full Definition of Liability Insurance


Liability insurance is a form of protection against claims of loss or injury, for which a policy owner might be otherwise responsible. In other terms, liability insurance indemnifies acts that are legally deemed negligent and may result in various damages. Liability insurance is often a mandatory form of insurance coverage for many professionals. As such, liability insurance extends to medical and legal fields in a form of malpractice insurance. Liability insurance may also apply to manufacturers of consumer goods, and is known as product liability. The primary purpose of liability insurance is to safeguard the policyholder from lawsuits and third party claims. Liability insurance was first introduced in transportation to protect motorists and vehicle owners in cases of car accidents.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/liability-insurance/
Modern Language Association (MLA):
Liability Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 25, 2020 https://payrollheaven.com/define/liability-insurance/.
Chicago Manual of Style (CMS):
Liability Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/liability-insurance/ (accessed: September 25, 2020).
American Psychological Association (APA):
Liability Insurance. PayrollHeaven.com. Retrieved September 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/liability-insurance/

Definition Sources


Definitions for Liability Insurance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 0 Views.