Liability Risk is a type of Operational Risk specifically the risk of being held liable or responsible for an action or inaction, whether or not at fault, resulting in a direct or indirect financial loss.
What is an example of a liability insurance?
For example, if a customer enters your flower shop, slips on your wet floor and breaks their leg, your general liability insurance can help cover the cost of their medical bills. General liability insurance does not cover your business's employees.
What are the four common methods of risk management?
The best way to avoid liability is to prevent injuries on your property in the first place and protect yourself with a solid insurance policy in the event the unavoidable and unexpected does occur.