Liability is defined as

Question

Quizplus · Accepted Answer

Liability refers to the legal responsibility for the financial cost of another person's losses or injuries, which is why option B is the best choice. Option A is incorrect as liability is not an insurance program for individuals and households, but insurance products may help mitigate liability risks. Option C is incorrect as negligence is a type of liability, but not the definition of liability. Option D is incorrect as it refers to physical damage and not liability. Option E is incorrect as risk assumption is a general term and does not specifically refer to liability.

Liability Is Defined as