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 Kentucky, 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. Kentucky law requires that the plaintiff prove the defendant's duty of care, the breach of that duty, and that the breach caused the plaintiff's damages. Liability insurance is a common way for individuals and businesses to protect themselves against potential legal claims, providing coverage for certain types of legal liabilities as defined in the policy. When an insured party faces a claim, they may file a liability claim with their insurer, seeking defense and indemnification against third-party claims. Additionally, in a business context, liability refers to financial obligations or debts of a company that are recorded on its balance sheet. These legal principles are enforced through the state's court system and are subject to both state statutes and federal laws.