Liability

{
  "id": "MLC-T-INS-001993",
  "term": "Liability",
  "field": "Insurance and risk management",
  "definition": "A legal obligation to pay for damages, losses, or harm caused to another person or entity, arising from one's actions, inaction, or ownership of property. Insurance policies, such as general liability or professional liability, are designed to cover these financial obligations if the insured is found legally responsible. Liability can be established through negligence, which requires proving a breach of duty, or under strict liability, where responsibility is imposed regardless of fault.",
  "url": "https://mlchart.com/terminology/insurance/liability/"
}