Liability Insurance

Definition

• An insurance policy that covers the losses and damages resulting from an insured entity's legal responsibilities or negligence. For example, liability insurance can be used to cover liability resulting from a customer slipping on a patch of ice on a business' premises. Also known as "third party insurance."

Synonyms
third party insurance

Related Terms and Acronyms

• Automobile Liability Insurance — Definition,
  • Insurance coverage for damages caused in traffic collisions.
• Consignment Insurance — Definition,
  • Insurance for assets on loan, consignment, in transfer of ownership, or up for auction.
• Employers Liability Insurance (ELI) — Acronym,
  • Insurance purchased to cover businesses for liability from workplace accidents.
• General Liability Insurance — Definition,
  • Insurance that protects individuals and businesses from a number of potential liabilities.
• Indemnity — Definition,
  • An arrangement where one party assumes liability for another party.
• Insurance (insur) — Abbreviation,
  • An arrangement where one party provides financial protection to another party for specific damages or losses.
• Insurance Institute of America (IIA) — Company,
  • An organization in America for developing curriculums, administrating examinations and providing certification programs for professionals in various insurance industries.
• Insurance Institute of Canada (IIC) — Company Est. 1899, Canada,
  • A group of insurance professionals who work together to provide education and training programs, professional development, and networking for students and insurance professionals.
• Insurance Proceeds — Definition,
  • The benefits received by an individual after a claim has been verified.
• Joint Liability — Definition,
  • The responsibility of two or more people to repay a debt
• Liability — Definition,
  • A situation where one party is found to be legally responsible for something.
• Loss Payable Clause — Definition,
  • An insurance policy provision for payment of a claim to someone, other than the insured's interest in the insured property. This clause basically allows an insurer to make payments to a third party in certain circumstances.
• Malpractice Insurance — Definition,
  • Insurance that covers professionals from liability due to their own negligence or intentional harm.
• Personal Lines — Definition,
  • Property and/or casualty insurance policies of individuals or whole families.
• Policy — Definition,
  • A set of rules or guidelines.
  • An insurance contract.
• Professional Liability Insurance (PLI) — Acronym, Very Important,
  • Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
• Tortfeasor — Definition,
  • A party who commits a tort (a civil wrong).