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 Washington State, liability in the context of personal injury refers to the legal responsibility one party (the defendant) has for causing harm to another party (the plaintiff). This typically arises when the defendant breaches a duty of care owed to the plaintiff, resulting in injury or damages. For instance, in a car accident where one driver negligently causes a collision, that driver may be found liable for the injuries and damages sustained by the other driver. Liability insurance is a type of coverage that protects the insured against claims arising from injuries or damages that the insured may cause to other people or property. It is designed to cover legal costs and any payouts for which the insured would be responsible if found legally liable. 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 financial obligations of a company, such as debts or obligations to pay damages, which are recorded on the company's balance sheet. Washington State's laws and regulations govern how liability is determined and the extent to which an individual or entity can be held responsible for damages.