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 Hawaii, liability in the context of personal injury law is established when one party (the defendant) is found to have breached a duty of care owed to another party (the plaintiff), resulting in damages. This duty of care is a legal obligation to avoid causing harm to others. If a breach of this duty leads to an injury, the injured party may file a lawsuit seeking compensation for their losses. Liability insurance is a type of insurance coverage that protects the insured from financial loss arising from claims of legal liability. In Hawaii, businesses and individuals often carry liability insurance to cover potential claims. When an insured party faces a claim, they may file a liability claim with their insurer, requesting defense and indemnification against third-party claims. Additionally, in the business context, liability refers to the financial obligations of a company, such as debts or other monetary responsibilities, which are recorded on the company's balance sheet. Hawaii's laws and regulations govern how liability is determined and addressed in both personal injury cases and in the financial accounting of businesses.