Liability
Liability is an obligation or responsibility to perform or not perform certain acts. This liability is enforceable by law. Liability often refers to monetary compensation that must be paid to a third party for damages or losses suffered due to the “fault” of the person being held liable. The damage or losses can refer to losses/damage to the person or to the property of the third party. A legal liability is therefore the rules of law that determine that a person must pay for damage done to another.
As an example, if you ignore a red robot and drive into an oncoming car you will be liable for the injuries of the other person(s) as well as any damage suffered to his car. A third party can also sue you for “pain and suffering.” While you are legally liable to a third party, you cannot be liable to yourself. In South Africa the liability of third party injuries or death sustained in car accidents are covered by the Road Accident Fund (see this section for further details.)
Every person and every business is subjected to legal liability claims as the result of certain actions or omitting certain actions and it is essential to ensure that you are sufficiently covered for any liability claims, both personal and in your business.
A liability investigation is the process of assembling all the facts after a car accident (for example) with the purpose of establishing the cause of the accident and therefore the liability.