Absolute Liability Definition
Definition of Absolute Liability in Insurance Concepts
Absolute Liability in Business - Absolute liability (or strict liability) is liability without fault, or liability without regard to fault. It applies usually when the actions of a person or entity are considered to go against public policy even when the action may not have been intentional or negligent.
Absolute Liability in Insurance - Absolute liability (or strict liability) is liability without fault. It often is applied when the actions of a person or entity are considered to go against public policy even when the action may not have been intentional or negligent.
An example of absolute liability would be if a manufacturer were to create a product that proved to be defective even if the manufacturer was not found to be at fault or negligent. Similarly, the owner of an animal may be held liable for injuries or damages caused by the animal even without being found negligent.
Absolute liability is a common concept in law, finance, business, and insurance.
What does the term "Absolute Liability" mean?
Definitions in this glossary are provided as a service by CPMI for health insurance license, casualty insurance license, and insurance continuing ed for insurance agents and producers.
