Definition - What does Liability Claim mean?
A liability claim is a situation in which the insured asks their insurance company for help or financial assistance for a third party's loss or damage that is attributable to the insured. Insurers will only intervene if the policy covers the particular type of loss or damage suffered by the third party.
Insuranceopedia explains Liability Claim
If the insured makes a mistake or is charged with making a mistake that has legal or financial effects and they have liability coverage, they can seek the help of their insurer. The insured may file a liability claim if, for example, they are involved in a vehicular accident that causes bodily injury or damage to another's property or are negligent on the job, resulting in suffering to a client or causing a product to have untoward consequences to a customer.
Assistance from the insurance company might include paying a settlement to the aggrieved third party, compensating for the loss or damage, or providing legal assistance when facing litigation.