Third-Party Liability

Third-party liability refers to the legal responsibility one party has to compensate another party for harm or damages caused by their actions or negligence. This typically arises in situations such as accidents, where one person's actions inadvertently cause injury or loss to someone else. For example, if a driver causes a car accident that injures another person, the driver may be liable for the victims' medical expenses and other damages. This liability is often addressed through insurance, which helps cover the financial costs associated with these claims.