What Does Statutory Liability Mean?
Statutory liability occurs when a party can be held responsible for a certain occurrence due to the terms of a specific law or statute. Many individuals and companies purchase statutory liability insurance to cover any situation in which they might be held accountable for certain events due to statutory liability.
Insuranceopedia Explains Statutory Liability
Most companies try to avoid breaking the law. However, some laws are either ambiguous, misunderstood, or hard to interpret. So, a company may unintentionally break the law. In such a case, even if the company didn't mean to do anything illegal, it could still be held accountable for doing so due to statutory liability. Statutory liability insurance helps provide coverage for such situations.