Liability is a legal determination or finding of fault or financial responsibility that is enforceable by law (generally the courts and legal processes)—such as when a person is found liable or is found to have liability for certain claims made or losses suffered by another person or entity.

In the personal injury context, liability usually results from a person or entity (the defendant) owing another person or entity (the plaintiff) a certain duty or standard of care, and the person or entity who owes the duty or standard of care (the defendant) breaching the duty or standard of care, resulting in damages to the other person or entity (the plaintiff).

The term liability may be used to describe:

• insurance (liability insurance) that insures the insured against certain kinds legal liability defined in the insurance policy;

• a certain kind of request made by an insured to its insurer, asking the insurer to defend and indemnify the insured against a claim by another person or entity (a third party)—often referred to as a liability claim or a third-party liability claim;

• a debt or financial responsibility of a company or business that appears on its balance sheet.

In Delaware, liability is a legal concept that refers to the responsibility one party (the defendant) has for causing harm or loss to another party (the plaintiff). This often arises in personal injury cases where the defendant is found to have breached a duty of care owed to the plaintiff, resulting in injury or damages. Delaware law requires that the plaintiff prove the defendant's duty of care, the breach of that duty, and that the breach caused the damages suffered. Liability insurance is a common way for individuals and businesses to protect themselves from financial loss due to legal liability. This insurance covers legal costs and any settlements or judgments against the insured. When an insured party faces a claim, they can file a liability claim with their insurer, requesting defense and indemnification against the third-party claim. Additionally, in a business context, liability refers to the debts or financial obligations of a company, which are recorded on its balance sheet and can affect the company's financial health and obligations to creditors.