Liability is the legal responsibility of a person or organization to pay damages to another person or organization for injury or loss. Liability arises when someone is legally responsible for damages, whether through negligence or an intentional act.
There are three types of liability: personal liability, product liability, and premises liability. Personal liability means that an individual is held liable for his or her own actions. Product liability means that a manufacturer or seller of a defective product can be held liable for injuries caused by the product. Premises liability means that a property owner can be held liable for injuries suffered by people on the property.