Definition - What does Legal Liability mean?
Legal liabilities are a person or entity's legal responsibilities under the law. There are many different types of legal liabilities, and lawsuits commonly arise over them. Damages often must be paid if a party is found to have breached a responsibility it had by law.
In the context of insurance, people and businesses commonly purchase liability insurance to cover them in the event of liability losses.
Insuranceopedia explains Legal Liability
Companies often need liability insurance in the event that someone is injured on their property. They also need product liability insurance to help protect against potential losses due to injuries caused by the products that they sell. Individuals can also purchase liability insurance to protect them from losses occurring as a result of injuries happening to people on their property, Many injuries can be extremely costly, and damages from lawsuits can cost people substantial amounts of money. Liability insurance protects people from these costs.
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