Insurance
Legal Liability
The legally enforceable obligation of an insurer or insured to compensate a third party for loss or damage caused by acts, omissions, or negligence, as established by law, contract, or court judgment. Central to liability insurance products.
Quick answer: The legally enforceable obligation of an insurer or insured to compensate a third party for loss or damage caused by acts, omissions, or negligence, as established by law, contract, or court judgment. Central to liability insurance products.
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Quick answer
The legally enforceable obligation of an insurer or insured to compensate a third party for loss or damage caused by acts, omissions, or negligence, as established by law, contract, or court judgment. Central to liability insurance products.
Why it matters
Legal Liability matters because it supports clear communication in Insurance contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Editorial context
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Definition
The legally enforceable obligation of an insurer or insured to compensate a third party for loss or damage caused by acts, omissions, or negligence, as established by law, contract, or court judgment. Central to liability insurance products.
Operational example
A general liability policy covers the insured's legal liability for bodily injury or property damage to third parties arising from covered incidents.
Definition language
English reference definition
Source
CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
Target audience
- Financial Analysts
- Bankers
- Traders
