Okuzeka
Insurance vocabulary · Property & Liability

Liability insurance

Meaning in insurance, with examples

nounCore term

In insurance, liability insurance means: Insurance that pays for injury or damage you are legally responsible for causing to other people, including the legal costs.

In Turkish: sorumluluk sigortası, mali sorumluluk sigortası

How it is used

Bought by businesses, professionals and individuals. Common types are public liability, product liability, employer's liability and professional liability. The key question in a claim is whether the insured is legally liable.

Example sentences

  1. The restaurant's liability insurance paid for the customer's medical bills after she slipped on a wet floor.

  2. Contractors must show proof of liability insurance before they start work on site.

Common collocations

  • public liability insurance
  • professional liability insurance
  • liability insurance cover
  • third-party liability
  • bodily injuryPhysical harm to a person, such as injury, illness or death, as opposed to damage to property.
  • third-party insuranceInsurance that pays for injury or damage you cause to other people and their property, but not for damage to your own vehicle.
  • property insuranceInsurance that covers buildings, equipment, stock and other physical assets against damage or loss from events such as fire, flood, storm and theft.
  • indemnityPayment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.

More terms: Property & Liability

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This page explains English vocabulary for learners. It is not financial advice.