Liability

In a legal sense, the word liability refers to the obligation to take responsibility for damages inflicted on another person or entity. Liability may result from a failure to perform due diligence or from a harmful act for which you are deemed responsible.

When you are made liable for damages incurred by a third party, you are required to provide that person or other entity with adequate compensation.

In Switzerland, getting a liability insurance policy is essential to protecting yourself from major financial losses resulting from liability suits.

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Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.