Insurance Terms Defined: Liability Loss

Liability Loss: A claim for monetary damages because of an injury to another party or damage to another party’s property.

Any time that you have caused or are being accused of causing injury to another party or damage to their property you are at risk of having a liability loss claimed against you.  This is not as bad as it may sound as liability insurance is among the most common and useful insurance coverages on the market today.

A liability loss can be as simple as that you backed into your neighbor’s mailbox and caused damage to the mailbox or other property.  Since a stationary object cannot be responsible for hitting something else you will easily be at fault for the accident and your auto insurance company will have to suffer the loss.