Assumption of Risk

Definition - What does Assumption of Risk mean?

Assumption of risk (or, assumed risk) refers to a form of legal defense the accused party in a personal injury lawsuit can use to try to prove that the injured party knew about the risks involved in a certain situation and agreed to assume the risk; therefore, the accused should not be held liable for damages to the other party. In the context of insurance, businesses and professionals purchase various forms of liability insurance to protect themselves from such lawsuits.

Insuranceopedia explains Assumption of Risk

In a personal injury case, the injured party or the plaintiff may try to argue that the injury was brought about by the negligence of the accused. As a response, the person accused of negligence may state that there has already been an assumption of risk on the side of the injured. This means that the injured already knew of the potential risks and they knowingly became part of the situation. If it can be proven that the injured person already knew about the risks beforehand, the case may be decided in favor of the accused. Consequently, the accused is found to have behave appropriately, the accused may no longer have an obligation to the injured.

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