Definition - What does Direct Liability mean?
A direct liability refers to a situation in which a person or a company becomes liable to another on the basis of their own act or omission. In terms of insurance, it is the basis of an insurance company paying a claim. That is, the insurer will only pay for the damage or injury if the insured individual or business is directly liable.
Insuranceopedia explains Direct Liability
Any person who personally causes harm or injury to a person or property has direct liability and must therefore pay for the damage done. For example, a person who throws a stone and breaks a window is directly answerable to the owner of that window.
A direct liability is the opposite of an indirect liability whereby a person or company becomes liable on the basis of the act or omission of another person or company. For example, a mother or father becomes indirectly liable for the acts of its minor child that resulted in damage or injury to another person or property.