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 Massachusetts, liability in the context of personal injury law is established when an individual or entity (the defendant) is found to have breached a duty of care owed to another (the plaintiff), resulting in damages. This breach must be proven by the plaintiff to hold the defendant legally responsible for the injuries sustained. Massachusetts follows a modified comparative negligence rule, which means that a plaintiff can recover damages only if they are found to be less than 51% at fault for the injury. If the plaintiff is 51% or more at fault, they cannot recover damages. Liability insurance is a common way for individuals and entities to protect themselves from financial loss due to legal liability. This insurance covers legal costs and any settlements or judgments against the insured up to the policy limits. When an insured party faces a claim, they can file a liability claim with their insurer, requesting defense and indemnification against third-party claims. In the business context, liability refers to financial obligations or debts of a company that are recorded on its balance sheet, representing claims against the company's assets.