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 Utah, as in other states, liability refers to the legal responsibility one party (the defendant) has for causing harm or loss to another party (the plaintiff). This concept is central to personal injury law, where a defendant may be found liable if they owed a duty of care to the plaintiff, breached that duty, and caused damages as a result. Liability insurance is a common way for individuals and businesses to protect themselves financially from claims of liability. Such insurance policies cover legal liabilities as defined within the policy terms, and they typically handle defense and indemnification against third-party claims. When an insured party faces a claim, they can file a liability claim with their insurer, requesting defense and indemnification. Additionally, in a business context, liabilities are financial obligations or debts recorded on a company's balance sheet, reflecting the company's legal obligations to pay debts or settle financial responsibilities.