Liability refers to legal responsibility or obligation for one's actions, which may involve financial or legal consequences.
-
Financial Liability
In the context of finance, liability represents a financial or pecuniary obligation owed by an individual or organization to another party.
Example sentence: She was unable to secure a loan due to her high levels of financial liability.
-
Legal Liability
Legal liability refers to the legal responsibility for one's actions or omissions, which may result in being held legally accountable.
Example sentence: The company faced significant legal liability for its failure to properly disclose the potential risks associated with its product.
-
Personal Liability
Personal liability refers to an individual's legal responsibility for their own actions, along with the potential consequences that may arise.
Example sentence: The business owner opted for limited liability to protect their personal assets from potential losses.
-
Professional Liability
Professional liability, also known as malpractice or errors and omissions (E&O) liability, arises when a professional fails to perform their duties to an expected standard.
Example sentence: The doctor faced a lawsuit due to allegations of professional liability resulting from a surgical error.
-
Product Liability
Product liability refers to the legal responsibility of manufacturers, distributors, and sellers for any harm caused by a defective product they produce or sell.
Example sentence: The customer filed a claim against the company for product liability after being injured by a faulty electrical appliance.