Business, Legal & Accounting Glossary
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.”
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.
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.
Definitions for Liability Insurance are sourced/syndicated and enhanced from:
This glossary post was last updated: 22nd April, 2020 | 0 Views.