Liability

In its broadest sense, the word 'liability' refers to a responsibility placed on someone, or something that places them at a disadvantage.

Liability has a number of more specific meanings, depending on the context in which it is used:

• A legal liability is a legally-bound obligation to pay debts or fulfill other obligations.
• A public liability is part of the law of tort which focuses on civil wrongs. See Tort and Public liability insurance for more information.
• Financial liability refers to the financial responsibilities one entity has to another, such as; borrowing to improving a business, or a transaction or other event that has already occurred but has not been paid for. Financial liabilities might be current (i.e. wages, taxes, accounts payable, and so on), or long-term (i.e. long-term bonds, long-term leases, pension obligations, and so on).

More detailed examples include:

• Defects liability. See defects liability period for more information.
• Liability for building design.
• Defective premises liability. See Defective premises - liability and measure of damages for more information.
• Joint and several liability.
• Architects liability.
• Vicarious liability
• Employers’ liability. See Employers’ liability insurance for more information.
• Strict liability.