If you cause material or physical damage to another, you are "liable" for those damages: that means you are legally responsible for them and must compensate them. Civil liability is a good example of this.

The distinction between contractual and extra-contractual liability is important here:

  • You speak of contractual liability when the damage occurs during the performance of a contract. Think of an accident at work or professional liability.

  • In extra-contractual liability, a person causes damage to another without the two people having a contract between them.

Disclaimer

This page is part of a lexicon and does not provide product information or contractual details on insurance services. For specific information, please refer to the official documentation or contact your insurance agent.

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