Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Liability Insurance

Synonyms:third party insurance
Filed Under: financial-banking, insurance
Tags: insurance, liability insurance

Definition of liability insurance

liability insurance
1. An insurance policy that covers the losses and damages resulting from an insured entity's legal responsibilities or negligence. For example, liability insurance can be used to cover liability resulting from a customer slipping on a patch of ice on a business' premises. Also known as "third party insurance."

Related Terms and Acronyms:

  • general liability insurance   Insurance that protects individuals and businesses from a number of potential liabilities.
  • insurance proceeds   The benefits received by an individual after a claim has been verified.
  • joint liability   The responsibility of two or more people to repay a debt
  • liability   A situation where one party is found to be legally responsible for something.
  • loss payable clause   An insurance policy provision for payment of a claim to someone, other than the insured's interest in the insured property. This clause basically allows an insurer to make payments to a third party in certain circumstances.
  • malpractice insurance   Insurance that covers professionals from liability due to their own negligence or intentional harm.
  • personal lines   Property and/or casualty insurance policies of individuals or whole families.
  • policy   An insurance contract.
  • professional liability insurance (PLI)   Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
  • tortfeasor   A party who commits a tort (a civil wrong).

More Related Terms and Acronyms

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